ACPR has granted Circle an e-money license for USDC and EURC across the EU, making Circle the first stablecoin issuer to be licensed under MiCA regulation. MiCA aims to protect investors by implementing stablecoin transaction limits.
Circle is now the first stablecoin issuer to get regulatory approval under the European Union’s Markets in Crypto-Assets (MiCA) regulations. France’s financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), has granted Circle a license to issue its USDC and Euro Coin (EURC) stablecoins across the EU.
Circle Secures E-Money License Under MiCA Regulations
Circle’s e-money license from the ACPR positions it as a pioneer in complying with MiCA regulations. Jeremy Allaire, Circle’s co-founder and CEO, highlighted the significance of this achievement, noting that it reflects the company’s commitment to building robust and regulated infrastructure for digital currencies.
The license enables Circle to offer its stablecoin services throughout the European Union, thanks to MiCA’s “passporting” feature, which allows crypto firms registered in one EU country to operate across all member states.
Stablecoins, such as USDC and EURC, are cryptocurrencies pegged to fiat currencies, offering a stable alternative to the volatility typically associated with other cryptocurrencies like Bitcoin. They facilitate quick transitions in and out of crypto investments without relying on traditional bank accounts, making them an attractive option for investors.
MiCA: EU’s Comprehensive Legal Framework for Crypto Operations
MiCA represents the EU’s first comprehensive legal framework governing crypto operations, including specific provisions to protect investors and prevent market manipulation. The initial set of MiCA regulations pertaining to stablecoins took effect immediately on June 30, while the remaining provisions for crypto asset service providers will be implemented by the end of December 2024. Full compliance with all MiCA regulations is required by July 2026.
One notable aspect of MiCA’s stablecoin rules is the limit on daily transaction volumes of non-euro stablecoins, capped at 1 million transactions or 200 million euros. This regulation aims to ensure market stability and protect the financial system from potential risks associated with high-volume transactions.
Circle Secures Regulatory Approval Under MiCA, Strengthens Market Position
Circle, established in 2018, has rapidly grown to become a major player in the cryptocurrency market. Its USDC stablecoin is the second-largest globally, with $32.4 billion worth of tokens in circulation, second only to Tether’s USDT, which boasts $112.7 billion.
The new regulatory approval under MiCA not only strengthens Circle’s market position but also enhances its ability to offer secure and compliant stablecoin services across the EU. This approval positions Circle as a leader in the stablecoin market within the European Union.
It is important to note that while some crypto service providers, like Bitstamp, have dropped Tether’s stablecoins in the EU, Circle’s regulatory approval gives USDC an edge over Tether’s stablecoins in the region.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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