Circle Bags MiCA’s E-Money License For USDC and EURC
Crypto payment firm Circle has announced that stablecoins USDC and EURC are available under EU regulations. This move makes Circle the first stablecoin company to become MiCA compliant. The Market in Crypto Assets regulation was hailed as a landmark regulation to usher clarity in many market areas.
Circle Obtains EU’s Stablecoin License
Circle secured the first EU stablecoin license and will now use both USDC and EURC for European customers. In a July 1 post on X (formerly Twitter), Circle’s co-founder Jeremy Allaire disclosed the development highlighting the genesis of systematic progress.
“Today’s announcement from Circle is a major milestone in the ongoing development of the internet financial system, with one of the largest economies in the world having established clear regulations that make stablecoins legal electronic money, and ushering in a phase in the crypto market’s development as a mainstream infrastructure for payments, finance and commerce.”
Circle also chose France as its European headquarters after previous collaborations in the jurisdiction. According to the release, the ACPR in France authorized the company as an E-Money issuer for both the USDC and EURC stablecoins. Users can access the assets via the Circle Mint France.
BREAKING NEWS: @Circle announces that USDC and EURC are now available under new EU stablecoin laws; Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1st.
Details… pic.twitter.com/isNBumoi3e
— Jeremy Allaire – jda.eth (@jerallaire) July 1, 2024
Previously, the company explored ways to have a stablecoin issued from both the US and EU jurisdictions while stressing fungibility across different networks. Following the announcement, crypto users in industry spaces laud the move calling on similar synergy between stakeholders and regulators.
A Compliant Regime
MiCA was billed to make the industry fully compliant after the collapse of several crypto firms which wiped out billions from the market. This announcement by Circle means that USDC and EURC in EU markets are MiCA compliant. Furthermore, the company will hold 100% of EURC reserves in the French entity.
“All of the USDC held by Europeans remains fully fungible globally, and users can trade, transact, self-custody, use in DeFi, etc. with no changes. For the vast majority of European users who purchase, hold, or sell USDC or EURC on an exchange or other crypto asset service provider’s product, nothing changes.”
The company lauded the impact of MiCA on crypto regulations citing the need for innovation and compliance.
Also Read: Bitcoin (BTC) Faces Strong Volatility On Divergent US PMI Data
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