Cryptocurrency firm Circle announced today (Monday) that it
is now registered as an electronic money institution (EMI) in France. This
registration grants Circle the license to become a compliant
stablecoin issuer under the European Union’s cryptocurrency regulations.
Circle, known primarily for its USD Coin (USDC) stablecoin,
received the e-money license from France’s banking industry regulator, the
Autorité de Contrôle Prudentiel et de Résolution. This makes Circle the
first global stablecoin issuer to comply with the European Union’s Markets in
Crypto-Assets (MiCA) regulatory framework.
With this approval, Circle will issue its USDC and Euro Coin
(EURC) tokens in the EU, adhering to MiCA’s stablecoin regulatory requirements.
The company also announced the opening of Circle Mint in France, allowing
businesses to mint and redeem Circle stablecoins.
Stablecoins are a type of cryptocurrency pegged to
traditional assets, like government-issued currencies such as the U.S. dollar.
Investors use them to avoid the volatility seen in other cryptocurrencies like
bitcoin. They are also a key tool for trading in and out of cryptocurrencies
quickly, without relying on fiat currencies stored in bank accounts.
Gaining MiCA Compliance
The EU passed a comprehensive law last year governing
cryptocurrency companies’ operations. This law, known as MiCA, outlines rules for investor protections and platform
security. MiCA officially took effect in May 2023, but stablecoin provisions
were only approved last week. These provisions impose trading limitations on
certain stablecoins, particularly US-denominated ones.
According to MiCA, companies must stop issuing
non-euro denominated stablecoins used as a “means of exchange” if they exceed 1
million transactions or 200 million euros per day.
As a France-registered EMI, Circle can now offer its
services, including minting and redeeming USDC via Circle Mint, to customers
throughout the European Union. MiCA allows crypto businesses to offer services
in one EU country and extend them to other markets within the bloc.
“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,” Jeremy
Allaire, Co-Founder and CEO of Circle, said in a statement.
The remaining MiCA obligations for crypto asset service
providers will become applicable by December 30, 2024. After this date, crypto
companies will have until July 2026 to achieve full compliance with MiCA.
Cryptocurrency firm Circle announced today (Monday) that it
is now registered as an electronic money institution (EMI) in France. This
registration grants Circle the license to become a compliant
stablecoin issuer under the European Union’s cryptocurrency regulations.
Circle, known primarily for its USD Coin (USDC) stablecoin,
received the e-money license from France’s banking industry regulator, the
Autorité de Contrôle Prudentiel et de Résolution. This makes Circle the
first global stablecoin issuer to comply with the European Union’s Markets in
Crypto-Assets (MiCA) regulatory framework.
With this approval, Circle will issue its USDC and Euro Coin
(EURC) tokens in the EU, adhering to MiCA’s stablecoin regulatory requirements.
The company also announced the opening of Circle Mint in France, allowing
businesses to mint and redeem Circle stablecoins.
Stablecoins are a type of cryptocurrency pegged to
traditional assets, like government-issued currencies such as the U.S. dollar.
Investors use them to avoid the volatility seen in other cryptocurrencies like
bitcoin. They are also a key tool for trading in and out of cryptocurrencies
quickly, without relying on fiat currencies stored in bank accounts.
Gaining MiCA Compliance
The EU passed a comprehensive law last year governing
cryptocurrency companies’ operations. This law, known as MiCA, outlines rules for investor protections and platform
security. MiCA officially took effect in May 2023, but stablecoin provisions
were only approved last week. These provisions impose trading limitations on
certain stablecoins, particularly US-denominated ones.
According to MiCA, companies must stop issuing
non-euro denominated stablecoins used as a “means of exchange” if they exceed 1
million transactions or 200 million euros per day.
As a France-registered EMI, Circle can now offer its
services, including minting and redeeming USDC via Circle Mint, to customers
throughout the European Union. MiCA allows crypto businesses to offer services
in one EU country and extend them to other markets within the bloc.
“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,” Jeremy
Allaire, Co-Founder and CEO of Circle, said in a statement.
The remaining MiCA obligations for crypto asset service
providers will become applicable by December 30, 2024. After this date, crypto
companies will have until July 2026 to achieve full compliance with MiCA.
