Cryptocurrency firm Circle has achieved a big milestone by securing registration as an electronic money institution (EMI) in France. This move grants Circle a vital license to operate as a compliant stablecoin issuer under the European Union’s rigorous crypto laws.
Circle Breakthrough
In response to a CNBC report, the approved license positions Circle as the primary global stablecoin issuer to attain compliance with the European Union’s regulatory framework often called Markets in Crypto-Assets (MiCA).
This framework, considered a cornerstone within the EU’s approach to governing cryptocurrencies, sets out comprehensive rules and obligations for crypto firms to make sure investor protection and safeguard against market manipulation.
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Circle’s acceptance into the MiCA regulatory framework signifies that each its USDC and Euro Coin (EURC) tokens can now be issued inside the European Union while meeting the stablecoin regulatory obligations outlined by MiCA.
Moreover, Circle is opening up its Circle Mint service, enabling businesses to mint and redeem Circle stablecoins, to customers in France.
Expressing his satisfaction with the achievement, Jeremy Allaire, co-founder and CEO of Circle, emphasized the corporate’s longstanding commitment to constructing compliant and well-regulated infrastructure for stablecoins. He stated:
Our adherence to MiCA, which represents probably the most comprehensive crypto regulatory regimes on the earth, is a big milestone in bringing digital currency into mainstream scale and acceptance.
European Stablecoin Adoption
The EU’s MiCA law, which officially got here into effect in May 2023, introduced the world’s first comprehensive regulatory framework for cryptocurrency operations.
Last week, provisions specifically governing stablecoins were approved, imposing stringent measures on trading volume limitations for certain stablecoins, particularly those denominated in US dollars.
As a registered EMI in France, Circle can now extend its services, including the minting and redemption of USDC through Circle Mint, not only to customers in France but in addition to individuals and businesses across the European Union.
That is made possible by the concept of “passporting” outlined in MiCA, which allows crypto businesses to supply services in a single EU country and expand into other markets inside the bloc.
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While Circle’s achievement is commendable, it needs to be noted that additional obligations under MiCA about crypto asset service providers will turn into applicable by December 30, 2024. Crypto firms will then have until July 2026 to make sure full compliance with MiCA’s requirements.
Since its launch in September 2018 by Circle and crypto exchange Coinbase, USDC has gained significant traction and now holds the position of the second-largest stablecoin globally.
In response to CoinGecko data, USDC’s circulation amounts to $32.4 billion, trailing only Tether’s USDT, which holds the title of the world’s largest stablecoin with a circulation of $112.7 billion.
The 1-D chart shows the overall crypto market cap’s valuation at $2.2 trillion. Source: TOTAL on TradingView.com
Featured image from Shutterstock, chart from TradingView.com