In a significant development for the cryptocurrency industry, Circle announced on July 1 that it has secured an e-money license from France. This milestone makes Circle the first global stablecoin issuer to comply with the EU’s Markets in Crypto-Assets (MiCA) regulations. The license, granted by France’s financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), enables Circle to issue its stablecoins USDC and Euro Coin (EURC) across the EU under the new regulatory framework, which is effective immediately.
Circle’s co-founder and CEO, Jeremy Allaire, expressed his enthusiasm about achieving MiCA compliance. Allaire stated that obtaining the license is a monumental step for Circle as the company continues to construct robust and regulated infrastructure for digital currencies. He believes that this achievement brings Circle closer to integrating digital currency into mainstream financial systems.
Stablecoins play a crucial role in the cryptocurrency market by offering stability to investors. These digital assets are designed to be pegged to fiat currencies like the US dollar, which helps investors avoid the volatility often associated with cryptocurrencies such as Bitcoin. Additionally, stablecoins facilitate quick transitions in and out of crypto investments without the need to rely on fiat currency held in traditional bank accounts.
The MiCA legislation represents the first comprehensive legal framework in the EU that governs crypto operations. It includes specific provisions aimed at protecting investors and preventing market manipulation. While certain MiCA provisions related to crypto asset service providers will come into effect by the end of December 2024, companies have until July 2026 to ensure full compliance with these regulations.
One of the notable aspects of MiCA’s stablecoin rules, finalized recently, is the limitation on the daily transaction volume of non-euro stablecoins. According to the regulations, these stablecoins are restricted to a maximum of 1 million transactions or 200 million euros ($215.2 million) per day. With Circle’s new status as a France-registered electronic money institution, the company can now extend its stablecoin services throughout the European Union.
Established in 2018, Circle has experienced substantial growth in recent years, particularly with its USDC stablecoin. USDC has emerged as the second-largest stablecoin globally, trailing only Tether’s USDT in terms of circulation. According to CryptoSlate data, there is currently $32.4 billion worth of USDC tokens in circulation, underscoring the significant market presence that Circle has established.
Overall, Circle’s attainment of the e-money license in France and its MiCA compliance mark important achievements in the company’s journey towards mainstream adoption of digital currencies in the financial landscape.
