Circle received a license to operate as a stablecoin issuer in the European Union, ensuring compliance with the EU’s new regulatory framework (MiCA). The stablecoins USDC and EURC are now recognized as fully legal digital tokens in Europe.
Jeremy Allaire, Co-Founder and CEO of Circle, announced that the company obtained an Electronic Money Institution (EMI) license from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR), becoming the first licensed stablecoin issuer in the EU.
According to Allaire, regulatory approval under the MiCA framework allows Circle’s USDC and EURC stablecoins to be the first digital tokens fully compliant with the new regulatory requirements. He noted that European users no longer need to exchange or convert their stablecoins to other digital assets to comply with the new EU regulatory rules.
Allaire emphasized that the choice of France as the company’s European headquarters was deliberate, citing the country’s progressive approach to digital asset regulation. He also praised the historical significance of updating the regulatory framework for digital assets in the EU, highlighting its impact on the global crypto adoption.
Under the MiCA bill, effective from June 30, 2024, key rules for stablecoin issuers include:
- mandatory registration and licensing as a crypto-asset service provider (CASP) or electronic money institution (EMI);
- maintaining reserve assets equal to the obligations of issued stablecoins;
- undergoing independent audits and providing financial reports;
- implementing risk management systems to minimize financial and operational risks;
- adhering to strict KYC, AML, and CFT requirements;
- providing detailed information about their activities;
- ensuring stablecoin holders can redeem their tokens at any time at face value;
- complying with limits on the total volume of issued stablecoins.
Cryptocurrency exchanges like Uphold, Binance, OKX, and Kraken started adjusting their stablecoin listing policies for EU users to prepare for the MiCA regulatory requirements.
