Circle Becomes First Global Stablecoin Issuer to Comply with MiCA Regulations

In a groundbreaking development, Circle, the financial technology firm behind USD Coin (USDC) and Euro Coin (EURC), has achieved compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This milestone positions Circle as the first global stablecoin issuer to meet MiCA’s stringent requirements.

MiCA, enacted by the EU last year, represents the world’s first comprehensive law specifically governing how crypto companies should operate. Under MiCA, stablecoin issuers must obtain authorization from national competent authorities within the EU. This authorization process involves stringent requirements, including demonstrating sufficient capital reserves, maintaining transparent governance structures, and adhering to robust risk management practices.

Circle’s MiCA Compliance

Circle’s French entity has secured an Electronic Money Institution (EMI) license from the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the French banking regulatory authority. With this license, both USDC and EURC are now being issued in the EU in full compliance with MiCA’s regulatory obligations for stablecoins or e-money tokens.

Circle Mint France: Unlocking Potential

Circle Mint France, equipped with local banking capabilities, will “onshore” the issuance of EURC stablecoin to the EU market. Additionally, Circle will issue USDC from the same entity. This move ensures that both dollar and euro stablecoins are fully compliant, unlocking the enormous potential of digital assets to transform finance and commerce.

A New Era for Stablecoins

MiCA’s comprehensive stance on stablecoins was catalyzed by the specter of big tech initiatives entering financial markets. Circle’s proactive approach to regulatory compliance underscores its commitment to building a more inclusive, compliant future for internet finance.