Circle has announced that its stablecoins, USDC and EURC, are now compliant with the EU’s Markets in Crypto Assets (MiCA) regulation. This compliance allows Circle to natively issue these stablecoins to European customers. The company is also authorized as an e-money issuer in France, which now serves as its European headquarters.

Circle’s Stablecoins Achieve EU MiCA Compliance

Financial technology firm Circle announced Monday that its USD stablecoin USDC and euro-backed stablecoin EURC are now available under the European Union’s Markets in Crypto Assets (MiCA) regulation, marking a significant milestone for the crypto market.

Jeremy Allaire, the CEO of Circle, shared the news on social media platform X, stating:

Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1st.

The Markets in Crypto Assets regulation, finalized nearly two years ago and approved by the EU Parliament last year, sets forth comprehensive guidelines for stablecoins and digital asset markets. This regulatory framework is seen as a crucial step in integrating stablecoins into the mainstream financial infrastructure for payments, finance, and commerce.

Circle explained:

All USDC and EURC currently in circulation in Europe are officially MiCA compliant, with Circle now holding 100% of EURC reserves under our regulated Circle France entity.

European users can continue to trade, transact, self-custody, and use these stablecoins in decentralized finance (defi) without any changes, the company clarified, emphasizing that most European users interacting with USDC or EURC via exchanges or crypto asset service providers will not experience any immediate changes. Circle’s new issuance and redemption processes for USDC and EURC are handled through Circle Mint France, targeting major institutions in the European market, including exchanges, market makers, brokerages, fintech companies, payment institutions, banks, and large enterprises.

The company also announced its authorization as an E-Money Issuer by the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the supervisory authority for banking and insurance in France. Circle highlighted France’s pioneering role in crypto regulation, noting that the country now serves as its European headquarters.

Source : Bitcoin News - Jul 2, 2024