Circle’s digital assets designed to be pegged to the US dollar and the euro have achieved compliance with the European Union’s laws, according to the stablecoin issuer’s CEO, Jeremy Allaire.

Allaire says that Circle is now the “first global stablecoin issuer to be compliant” with the Markets in Crypto Assets (MiCA) regulations.

MiCA is a comprehensive regulatory framework for the cryptocurrency industry in the European Union (EU) which, among other things, places stablecoin issuers under the European Banking Authority while requiring them to hold sufficient liquid reserves.

“Circle is now natively issuing both USDC and EURC to European customers effective July 1st… Today’s announcement from Circle is a major milestone in the ongoing development of the internet financial system, with one of the largest economies in the world having established clear regulations that make stablecoins legal electronic money, and ushering in a phase in the crypto market’s development as a mainstream infrastructure for payments, finance and commerce.”

Allaire further says that Circle is now authorized as an electronic money issuer by the French financial regulator Autorité de Contrôle Prudentiel et de Résolution (ACPR).

“Circle France is now home to the headquarters of our European regulated financial activity, and European customers can now directly access USDC and EURC via Circle Mint France…

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, and similarly holding the necessary reserves for European USDC holders within the EU with a Global Systemically Important Bank (GSIB).”

Source : The Daily Hodl - Jul 3, 2024