Key Insights
- Circle has become the first global stablecoin issuer to comply with the EU’s MiCA regulation.
- The compliance follows Circle’s strategic moves in Europe, including obtaining a French digital asset license.
- While Circle leads in compliance, other industry players express concerns about MiCA’s impact,
PARIS (MarketsXplora) – Circle, the issuer of USD Coin (USDC), has become the first global stablecoin provider to achieve compliance with the European Union’s Markets in Crypto Assets (MiCA) regulation, which came into effect today.
In a Paris press conference, Circle CEO Jeremy Allaire announced that the company has secured licensing and approval to issue stablecoins under the new regulatory framework. This landmark development allows Circle to issue both its USDC and EURC stablecoins in compliance with MiCA guidelines.
“This achievement marks a significant milestone in the evolution of the digital asset landscape in Europe,” Allaire told reporters. “It demonstrates our commitment to regulatory compliance and sets a new standard for the industry.”
Circle’s compliance follows a series of strategic moves, including obtaining a digital asset regulatory license in France last December and appointing a Head of French Operations. The company plans to launch its MiCA-compliant stablecoins in Europe through its French entity.
USDC, currently the second-largest USD-pegged stablecoin, accounts for 20% of the total stablecoin supply as of June 28, according to CoinMarketCap data.
The MiCA regulation, approved by the European Parliament in April 2023, aims to create a uniform regulatory environment for cryptocurrencies across EU member states. It imposes stricter requirements on stablecoin issuers operating within the region, with phased implementation leading to full compliance by year-end.
However, the new regulation has sparked concerns among some industry players. Tether CEO Paolo Ardoino previously expressed reservations about MiCA’s impact on stablecoin issuers, stating that certain requirements could make operations “extremely complex” and potentially riskier.
Read also! New EU’s MiCA Regulation Force Stablecoin Conversions, Industry Adapts
In response to the regulatory changes, major crypto exchange Binance announced plans to restrict access to “unauthorized” stablecoins in Europe by June 30. Binance CEO Richard Teng later clarified that the exchange would not delist unauthorized stablecoins but would limit their availability for European users on certain products.
“Circle’s compliance with MiCA could set a precedent for how global stablecoin issuers navigate European regulations,” said Ethan Stephen, markets analyst at MarketsXplora. “It may encourage other companies to accelerate their compliance efforts.”