Circle Becomes First Global Stablecoin Issuer Compliant with EU's MiCA Regulations
This regulatory compliance allows Circle to extend its services across the EU, offering greater stability and security in the rapidly evolving crypto market.
The crypto company Circle has reached a significant achievement by becoming the first international stablecoin issuer to secure an e-money license per the European Union's rigorous cryptocurrency regulations. Issued by the French banking authority, Autorité de Contrôle Prudentiel et de Résolution (ACPR), this license permits Circle to distribute its stablecoins while adhering to the EU's Markets in Crypto-Assets (MiCA) regulatory standards, according to a news report by CNBC.
Circle, the issuer of USD Coin (USDC) and Euro Coin (EURC) stablecoins, has obtained the legal authority to mint and redeem these tokens within the EU. This development comes in the wake of the EU's enactment of extensive cryptocurrency regulations, establishing the first global regulatory framework dedicated to safeguarding investor interests and maintaining market integrity.
Jeremy Allaire, Circle’s co-founder and CEO, emphasized the importance of adhering to MiCA, highlighting it as a crucial step towards mainstream acceptance of digital currencies. This regulatory compliance allows Circle to extend its services across the EU, offering greater stability and security in the rapidly evolving crypto market.
Stablecoins, which are pegged to traditional assets like government-issued currencies, are crucial for trading and mitigating the volatility associated with other cryptocurrencies. The EU’s new rules, effective from May 2023, particularly focus on stablecoins, imposing strict trading limitations to maintain market stability.
This license positions Circle to broaden its operations and solidify its role in the international cryptocurrency market, all while adhering to one of the world's most extensive regulatory frameworks.
