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Circle announces compliance with European Union Markets in Crypto-Assets regulations

Policy

Circle Chief Executive Officer Jeremy Allaire | LinkedIn

By Crypto Republique

Jul 9, 2024

The global financial technology firm announced they are the first global stablecoin issuer to be in compliance with the European Union's (EU) Markets in Crypto-Assets (MiCA) regulatory framework which came into effect on June 30. The company made the announcement in a press release on July 1.

The European Economic Area (EEA) announced they will regulate stablecoins starting in July of 2024, meaning only authorized companies will be able to offer stablecoins to customers. These “Regulated Stablecoins” will not have the same restrictions as “unauthorized stablecoins” that carry over from the period before EEA regulations.

Circle was able to achieve compliance with the new rules by attaining an Electronic Money Institution (EMI) license from the French banking regulatory authority Autorité de Contrôle Prudentiel et de Résolution (ACPR). The license ensures that the USDC and EURC being issued comply with the MiCA’s regulatory obligations for stablecoins or e-money tokens.

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“Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins, and 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,” Circle co-founder and Chief Executive Officer Jeremy Allaire said. “By working closely with French and EU regulators, we are now able to offer both USDC and EURC as fully-compliant dollar and euro stablecoins to the European market, unlocking the enormous potential of digital assets to transform finance and commerce.”

Binance, the largest crypto exchange in the world, announced on June 3 that it would implement several changes in order to comply with the MiCA stablecoin regulations taking effect June 30, according to a post on the company's website. Binance said it would restrict the availability of Unauthorized Stablecoins, and users would not be able to use Unauthorized Stablecoins in spot trading pairs.

Circle is a financial technology company known for developing USDC (USD Coin), a digital currency pegged to the US dollar on a 1:1 basis. The company collaborates closely with regulators to ensure USDC meets and exceeds standards for stablecoins. According to the company website, the company's mission is to enhance global economic prosperity by facilitating frictionless value exchange through USDC.