Circle has become the first stablecoin issuer to meet new Canadian listing requirements for its USD Coin (USDC), marking a major milestone amid ongoing reports of layoffs within the company.
In a December 4 post on X, Circle CEO Jeremy Allaire announced that USDC is the first of the top dollar-backed stablecoins to comply with Canada’s updated digital asset regulations.
The rules, established by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA), cover Value-Referenced Crypto Assets (VRCA).
The compliance means that USDC will continue to be available on registered crypto exchanges and trading platforms in Canada. These platforms must comply with the new VRCA standards by December 31 and non-compliant stablecoins will be removed.
Several notable crypto companies including Twin, Binance, And Paxos exited the Canadian market in the past year due to regulatory challenges. These deviations followed the Canadian government’s introduction of stricter regulations for the crypto industry.
However, Dante Disparte, Circle’s head of global policy, emphasized that USDC’s continued presence in Canada demonstrates the company’s commitment to global regulatory standards.
He emphasized that Canada’s progressive approach to regulation improves the integrity of digital asset markets while supporting the use of USDC within the country’s growing ecosystem.
Workforce reduction
At the same time, Circle’s regulatory success coincides with reports of a 6% workforce reduction within the company, Bloomberg reported.
A Circle spokesperson reportedly clarified that the layoffs are part of routine operational reviews to optimize investments and control costs. The spokesperson added that the company continues to invest in critical teams and infrastructure, while slightly scaling back certain roles in other areas.
Meanwhile, the company continues to focus on expanding its geographic footprint, especially in areas such as artificial intelligence.
These moves coincide with USDC’s continued dominance as the second-largest stablecoin in the crypto market. According to Crypto Slates data controls digital ownership 20% of the market with a supply of $40 billion.
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