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Circle Becomes First Stablecoin Issuer to Comply with MiCA Regulations
Cryptocurrency firm Circle announced today (Monday) that it is now registered as an electronic money institution (IME) in France. This registration grants Circle a license to become a stablecoin issuer compliant with European Union cryptocurrency regulations.
Circle, best known for its stablecoin USD Coin (USDC), has received its electronic money license from the French banking regulator, the Autorité de Contrôle Prudentiel et de Résolution. This makes Circle the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
With this approval, Circle will issue its USDC and Euro Coin (EURC) tokens in the EU, adhering to MiCA’s stablecoin regulatory requirements. The company also announced the opening of Circle Mint in France, allowing businesses to mint and redeem Circles stablecoins.
Stablecoins are a type of cryptocurrency pegged to traditional assets, such as government-issued currencies like the US dollar. Investors use them to avoid the volatility seen in others cryptocurrencies like bitcoin. They are also a key tool for quickly trading in and out of cryptocurrencies, without relying on fiat currencies deposited in bank accounts.
Achieving MiCA Compliance
Last year the EU passed a comprehensive law regulating the operations of cryptocurrency companies. This law, known as Not, outlines the rules for investor protection and platform security. MiCA officially went into effect in May 2023, but the stablecoin provisions were only approved last week. These provisions impose trading restrictions on certain stablecoins, particularly those denominated in the United States.
According to MiCA, companies must stop issuing stablecoins denominated in currencies other than the euro, used as a “medium of exchange”, if they exceed 1 million transactions or 200 million euros per day.
As a registered EMI in France, Circle can now offer its services, including USDC minting and redemption via Circle Mint, to customers across the European Union. MiCA allows cryptocurrency companies to offer services in one EU country and expand to other markets within the bloc.
“Our membership in MiCA, one of the most comprehensive cryptocurrency regulatory regimes in the world, represents a huge milestone in bringing digital currency to mainstream scale and acceptance,” said Jeremy Allaire, Circle co-founder and CEO, in a statement.
The remaining MiCA obligations for cryptocurrency service providers it will become applicable by December 30, 2024. After this date, cryptocurrency companies will have until July 2026 to achieve full compliance with MiCA.
Cryptocurrency company Circle announced today (Monday) that it is now registered as an electronic money institution (EMI) in France. This registration grants Circle the license to become a stablecoin issuer compliant with European Union cryptocurrency regulations.
Circle, best known for its stablecoin USD Coin (USDC), has received an e-money license from France’s banking regulator, Autorité de Contrôle Prudentiel et de Résolution. This makes Circle the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
With this approval, Circle will issue its USDC and Euro Coin (EURC) tokens in the EU, adhering to MiCA’s stablecoin regulatory requirements. The company also announced the opening of Circle Mint in France, allowing businesses to mint and redeem Circle stablecoins.
Stablecoins are a type of cryptocurrency that is pegged to traditional assets, such as government-issued currencies like the U.S. dollar. Investors use them to avoid the volatility seen in other cryptocurrencies like bitcoin. They are also a key tool for quickly trading in and out of cryptocurrencies, without relying on fiat currencies deposited in bank accounts.
Achieving MiCA Compliance
Last year, the EU passed a comprehensive law regulating the operations of cryptocurrency companies. This law, known as Not, outlines the rules for investor protection and platform security. MiCA officially came into force in May 2023, but the stablecoin provisions were only approved last week. These provisions impose trading restrictions on certain stablecoins, particularly those denominated in the United States.
According to MiCA, companies must stop issuing non-euro-denominated stablecoins used as a “medium of exchange” if they exceed 1 million transactions or 200 million euros per day.
As an EMI registered in France, Circle can now offer its services, including the minting and redemption of USDC via Circle Mint, to customers across the European Union. MiCA allows crypto firms to offer services in one EU country and extend them to other markets within the bloc.
“Our membership in MiCA, which represents one of the most comprehensive cryptocurrency regulatory regimes in the world, represents a huge milestone in bringing digital currency to mainstream scale and acceptance,” said Jeremy Allaire, co-founder and CEO of Circle, in a note.
The remaining MiCA obligations for cryptocurrency service providers will become applicable by 30 December 2024. After this date, cryptocurrency companies will have until July 2026 to achieve full compliance with MiCA.