Stablecoin issuer Circle announced on Monday (1st) that it had obtained a license and approval to issue stablecoins under the regulatory framework of the Markets in Crypto Assets (MiCA).
Circle CEO Jeremy Allaire said at a press conference in Paris that Circle is the first stablecoin issuer in the world to comply with the MiCA regulatory framework, and the relevant rules have come into effect on July 1. Circle will be able to issue the U.S. dollar stablecoin USDC and the euro stablecoin EURC under this regulatory framework.
Source: Jeremy Allaire
The move follows Circle’s gradual compliance with regulatory compliance requirements in the stablecoin space. In December last year, Circle obtained an electronic money institution (EMI) license in France and appointed a head of French operations. Now, the company will launch a MiCA-compliant stablecoin in Europe through its French entity.
USDC is the second-largest U.S. dollar-pegged stablecoin, accounting for 20% of the total stablecoin supply as of June 28, according to The Block.
Source: The Block MiCA Act
The Markets in Crypto-Assets Act (MiCA) is a comprehensive regulatory framework established by the European Union to establish unified cryptocurrency regulation across its member states. MiCA was approved by the European Parliament in April 2023 and the rules are currently being implemented in phases.
As part of the framework, it requires stablecoins issued in the region to pass stricter regulatory requirements. Other regulations will be phased in over time, including some that apply to stablecoins, with full compliance required on all fronts by the end of the year. Stablecoin issuers must comply with certain requirements of MiCA starting June 30.
Stablecoin issuers operating outside the EU but providing services to EU residents will also need to comply with MiCA regulations. However, some confusion remains regarding the implementation of MiCA.
Some stablecoin issuers have expressed concerns about how MiCA applies to these assets. Last month, Paolo Ardoino, CEO of Tether, the issuer of the stablecoin USDT, told The Block that MiCA “contains several problematic requirements” that not only may make the work of stablecoin issuers extremely complicated, but also This will make the operation of EU-licensed stablecoins extremely fragile and riskier.
Cryptocurrency exchange Binance said in early June that its platform would begin restricting the use of "unauthorized" stablecoins in Europe by June 30, although the company did not mention Tether's USDT stablecoin. Binance CEO Richard Teng later clarified on the X platform: “Binance will not immediately remove any unauthorized stablecoins, but will limit their availability to European Economic Area (EEA) users on certain products only. "
Richard Teng also shared the news about USDC becoming a regulated stablecoin in the European Economic Area on the social platform on Monday, and said that USDC will continue to be provided to their European Economic Area users in Binance’s products. Teng continued:
“USDC becoming a MiCA-compliant electronic money token (EMT) marks a positive step forward for the European Economic Area’s crypto ecosystem. We hope that more MiCA-compliant EMTs will emerge in the near future.”
Source: Richard Teng
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