Key Points
- Circle’s USDC and EURC gain first EU regulatory approval
- Circle sets up European HQ in France
- Coralie Billmann was appointed to head Circle’s French operations
- Other exchanges adapt stablecoin policies ahead of MiCA
The corporate issuer of the USD Coin (USDC), Circle, has reached a significant milestone as it became the first stablecoin issuer to be authorized under the Markets in Crypto-Assets (MiCA) framework.
Circle’s Landmark Achievement with USDC and EURC
Circle’s USDC and EURC stablecoins are now compliant with MiCA regulations. This endorsement guarantees that investors can continue using these stablecoins without fear of falling foul of any regulations or being forced to switch to different digital assets.
Describing France as its European headquarters, Circle pointed out that it was progressive when it came to regulating digital assets. The company has appointed Coralie Billmann, formerly with 3S Money, to lead its French operations, which shows its commitment to strong regulatory relationships.
JUST IN: Circle’s USDC and EURC become first EU-approved stablecoins
— Crypto Chiefs News (@CryptoChiefNews) July 1, 2024
Circle’s Strategic Move to France
The Boston-based firm applied in March this year to become a licensed Electronic Money Institution and a registered Digital Asset Service Provider (DASP) based in France.
The authorization process involves a green light from Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
Jeremy Allaire, co-founder and CEO at Circle said that this is an unprecedented moment for stablecoin regulation because it marks another important step towards integrating digital currencies into global financial systems.
Impact on other crypto exchanges
In response to MiCA, some exchanges have adjusted their stablecoin policies. Uphold announced delisting six stablecoins including Tether (USDT) and Dai (DAI) for European users.
Bitstamp removed Tether’s EURT although the stablecoin was adopted early by the exchange. Binance has taken a “sell only” approach where certain fiat equivalents are labeled compliant or non-compliant thereby limiting market features rather than completely removing stablecoins.
These moves highlight how much MiCA will affect the crypto market by determining what rules exchanges must follow within EU territories. The regulatory outlook is changing and now that Circle has received approval it sets a precedent for other issuers of stablecoins.
Circle’s Role in Shaping Crypto Regulation
This marks a big moment for the cryptocurrency industry as Circle has succeeded with their EU application to regulate their stablecoin USDC.
It also shows that digital assets are becoming more accepted into mainstream finance systems which is expected to lead to increased adoption and clarity around regulations.
