Circle announced on July 1 that it has received an e-money license from France, positioning itself as the first global stablecoin issuer to comply with the EU’s Markets in Crypto Assets (MiCA) regulations.
The license, issued by the French financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), allows Circle to issue its stablecoins USDC and Euro Coin (EURC) across the EU under the new regulatory framework, effective immediately .
Circle co-founder and CEO Jeremy Allaire said:
“Achieving MiCA compliance is a monumental step for Circle as we continue to build a robust and regulated digital currency infrastructure. This milestone brings us closer to integrating digital currencies into mainstream financial systems.”
Stablecoins, cryptocurrencies pegged to fiat currencies such as the US dollar, allow investors to avoid the volatility typical of other cryptocurrencies such as Bitcoin. They also enable quick transitions in and out of crypto investments without relying on fiat money in bank accounts.
The MiCA legislation is the first comprehensive legal framework in the EU regulating crypto operations. It contains specific provisions to protect investors and prevent market manipulation.
The remaining MiCA provisions, which cover crypto asset service providers, will come into force at the end of December 2024. Companies have until July 2026 to ensure full compliance with these regulations.
Notably, MiCA’s stablecoin rules, finalized last week, limit the daily transaction volume of non-euro stablecoins to a maximum of 1 million transactions or 200 million euros ($215.2 million).
With its new status as an electronic money institution registered in France, Circle can now offer its stablecoin services throughout the European Union. MiCA’s “passport” feature allows crypto companies registered in one EU country to operate in other member states, facilitating broader market access.
Founded in 2018 and known for its USDC stablecoin, Circle has grown significantly, with USDC becoming the second largest stablecoin in the world.
Based on data from CryptoSlate, there are currently $32.4 billion worth of USDC tokens in circulation, making it second only to Tether’s USDT, which has $112.7 billion in circulation.