- Circle’s stablecoins pegged to the US dollar and the euro have reached full compliance with the European Union’s regulations, according to CEO Jeremy Allaire.
- This milestone makes Circle the “first global stablecoin issuer to be compliant” with the Markets in Crypto Assets (MiCA) framework.
- “Circle is now natively issuing both USDC and EURC to European customers effective July 1st,” announced Allaire.
Circle successfully aligns its digital assets with EU regulations, signaling a major milestone for stablecoins and their role in modern financial systems.
Circle Becomes First Global Stablecoin Issuer to Comply with MiCA
Circle, a prominent issuer of digital assets, has announced that its stablecoins, USDC and EURC, are now fully compliant with the Markets in Crypto Assets (MiCA) regulations in the European Union. This landmark achievement positions Circle as the first global stablecoin issuer to meet these comprehensive regulatory standards.
Understanding the MiCA Regulatory Framework
MiCA represents a rigorous and thorough regulatory framework for the cryptocurrency industry within the EU. One of its key requirements is for stablecoin issuers to be under the supervision of the European Banking Authority. Additionally, issuers must maintain substantial liquid reserves to ensure stability and accountability. Circle’s compliance indicates a significant step forward for the broader acceptance and integration of digital currencies in mainstream finance.
Circle Establishes European Headquarters in France
In addition to achieving MiCA compliance, Circle has been authorized as an electronic money issuer by the French financial regulator, Autorité de Contrôle Prudentiel et de Résolution (ACPR). This authorization allows Circle to operate its European regulated financial activities from its new headquarters in France.
Implications for European Customers
European customers will now have direct access to USDC and EURC through Circle Mint France. All digital assets currently in circulation within Europe are officially compliant with MiCA, with Circle holding 100% of EURC reserves under its regulated entity in France. Additionally, the necessary reserves for European USDC holders are maintained within the European Union with a Global Systemically Important Bank (GSIB), ensuring the highest standards of security and regulatory adherence.
Conclusion
This development is a major milestone in the evolution of the internet financial system. Circle’s adherence to MiCA regulations not only legitimizes stablecoins as legal electronic money within one of the world’s largest economies but also sets a precedent for the crypto market’s development as a mainstream financial infrastructure. This compliance heralds a transformative phase in how payments, finance, and commerce are executed globally, bolstering the role of stablecoins in the future of digital transactions.
