Regulation
Mica, Circle Becomes First Stablecoin Issuer Compliant with New European Regulation
Circle has reached an important milestone by becomingthe first global stablecoin issuer to be compliant with the Markets in Crypto Assets (MiCA) regulationStarting July 1, Circle is authorized to release its USDC AND EURC stablecoin according to the regulatory framework MiCA, CEO Jeremy Allaire announced at a press conference in Paris.
A step forward in regulatory compliance
The move comes after Circle took important steps to adhere to regulatory compliance in the stablecoin space. Last December, Circle obtained a digital asset license in France and appointed a French operations manager. Now, Circle will launch its MiCA-compliant stablecoins in Europe through its French entity.
USDC: One of the Major Stablecoins
USDC, the second largest stablecoin pegged to the US dollar, has represented20 percent of the total stablecoin supply as of June 28, according to The Block Data Control PanelThis positioning reinforces the importance of regulatory compliance in maintaining investor and user confidence.
MiCA: A Uniform Regulatory Framework for Cryptocurrencies
THE Cryptocurrency Markets (MiCA) is a comprehensive regulatory framework established by the European Union to create uniformity in cryptocurrency regulation across its members. Approved by the European Parliament in April 2023, MiCA is being implemented in phases, with full compliance required by the end of the year.
Stablecoin Compliance Requirements
Part of the MiCA regulatory framework requires the issuance of stablecoins in the region to comply with more stringent regulatory requirements. Stablecoin issuers must begin complying with certain MiCA requirements starting June 30. Stablecoin issuers operating outside the EU but providing services to EU residents will also need to comply with MiCA regulations.
Concerns and criticisms about MiCA regulation
However, not everyone is enthusiastic about the new regulations. Some stablecoin issuers have raised concerns about how MiCA applies to their assets. Last month, Tether CEO Paul Ardoino told The Block that MiCA “contains several problematic requirements.” Ardoino noted that these requirements could make the work of stablecoin issuers extremely complex and increase operational risks for EU-licensed stablecoins.
Exchange of answers
The well-known cryptocurrency exchange Binance announced that it will begin restricting access to “unauthorized” stablecoins in Europe starting June 30. However, Binance did not mention USDTthe largest stablecoin by circulation. CEO of Binance Richard Teng clarified in a post on X (formerly Twitter) that “Binance will not remove any unauthorized stablecoins from the spot market, but will limit their availability to European users on certain products only,” adding that “updates on regulated stablecoins will be shared soon.”