Circle Becomes First Stablecoin Issuer to Achieve MiCA Compliance with E-Money License from France
Circle announced on July 1 that it has received an e-money license from France, making it the first global stablecoin issuer to comply with the EU’s Markets in Crypto-Assets (MiCA) regulations.
This landmark license, granted by France’s financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), permits Circle to issue its stablecoins USDC and Euro Coin (EURC) across the EU under the new regulatory framework, effective immediately.
Jeremy Allaire, Circle co-founder and CEO, commented on this achievement:
“Achieving MiCA compliance is a monumental step for Circle as we continue to build robust and regulated infrastructure for digital currencies. This milestone brings us closer to integrating digital currency into mainstream financial systems.”
Stablecoins, which are cryptocurrencies pegged to fiat currencies like the US dollar, help investors avoid the volatility typical of other cryptocurrencies such as Bitcoin. They enable quick transitions in and out of crypto investments without relying on fiat currency in bank accounts.
The MiCA legislation is the first comprehensive legal framework in the EU governing crypto operations. It includes specific provisions to protect investors and prevent market manipulation.
The remaining MiCA provisions, which pertain to crypto asset service providers, will come into effect by the end of December 2024. Companies will have until July 2026 to ensure full compliance with these regulations.
Notably, MiCA’s stablecoin rules, finalized last week, limit the daily transaction volume of non-euro stablecoins to a maximum of 1 million transactions or 200 million euros ($215.2 million).
With its new status as a France-registered electronic money institution, Circle can now offer its stablecoin services across the European Union. MiCA’s “passporting” feature allows crypto firms registered in one EU country to operate in other member states, facilitating broader market access.
Founded in 2018, Circle is known for its USDC stablecoin, which has grown significantly to become the second-largest stablecoin worldwide. According to CryptoSlate data, there is currently $32.4 billion worth of USDC tokens in circulation, second only to Tether’s USDT, which has $112.7 billion in circulation.
Circle's new regulatory status underscores its commitment to compliance and sets a precedent for other stablecoin issuers aiming to navigate the evolving regulatory landscape in the EU.
Credit - CryptoSlate
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