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Circle, the cryptocurrency firm known for its USD Coin (USDC) stablecoin, announced on Monday that it has been registered as an electronic money institution (EMI) in France. 
Advised by De Gaulle Fleurance, this key license allows Circle to become a compliant stablecoin issuer under the European Union’s stringent crypto regulations. 
The e-money license was granted by France’s banking regulator, the Autorite de Controle Prudentiel et de Resolution (ACPR). This approval marks Circle as the first global stablecoin issuer to comply with the EU’s Markets in Crypto-Assets (MiCA) regulatory framework. Consequently, Circle can now issue its USDC and Euro Coin (EURC) tokens in the EU in full compliance with MiCA’s regulations. 
Jeremy Allaire, Circle’s co-founder and CEO, highlighted the significance of this achievement, stating, “Our adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance.” 
MiCA, the EU’s comprehensive crypto law, was officially enforced in May 2023, with specific provisions for stablecoins approved recently. These new rules impose limits on trading volumes of non-euro-denominated stablecoins used as a “means of exchange” if they exceed 1 million transactions or a value of over 200 million euros per day. 
Circle has chosen France as its European headquarters, citing the country’s progressive stance on digital asset regulation and its collaboration with ACPR. Allaire noted the historical significance of the EU’s regulatory overhaul, acknowledging the evolution of digital assets from niche concepts to integral parts of the global financial system. 
The remaining MiCA obligations for crypto asset service providers will become applicable by December 30, 2024, with full compliance required by July 2026. Launched in September 2018 by Circle and Coinbase, USDC is the second-largest stablecoin globally, following Tether’s USDT. 
It is worth noting that MiCA came into partial effect in June, with specific rules for stablecoins starting on June 30. In response, several crypto exchanges, including Uphold, Binance, Kraken, and OKX, have begun delisting noncompliant stablecoins such as Tether (USDT). Bitstamp has also announced plans to delist Euro Tether (EURT). 
These actions are being taken to comply with the new regulations and ensure continued operation within the EU and the European Economic Area (EEA). 
According to Jón Egilsson, former chairman of the supervisory board of the Icelandic Central Bank, noncompliant stablecoin issuers might exit the EU market, leading to a potential increase in demand for euro-backed stablecoins. 
“We are delighted to support this global player in blockchain and stablecoins, which has chosen France to develop its activities in Europe under the new European crypto-asset regime.&nbsp;By obtaining this EMI approval at the same time as the MiCA regulations come into force, Circle is paving the way for stablecoin issuers in Europe, testifying to the attractiveness of the French and European regulatory framework,”&nbsp;explain Anne Maréchal and Cyril Tour, partners at De Gaulle Fleurance. 
The full MiCA regulations for crypto asset service providers are set to be implemented in December 2024. 
The post <a href="https://www.unlock-bc.com/125399/circle-registers-first-mica-compliant-stablecoin-issuer-eu/">Circle Registers as First MiCA-Compliant Stablecoin Issuer in the EU</a> appeared first on <a href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Circle Registers as First MiCA-Compliant Stablecoin Issuer in the EU

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