Circle Earns French Approval: Is This a Turning Point for Stablecoins in Europe?

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Circle’s USDC Stablecoin Now Compliant with EU Crypto Law

Launched in 2018 by crypto firm Circle, USDC is now the second-biggest stablecoin globally, with more than $30 billion worth of tokens in circulation.

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Cryptocurrency firm Circle announced on Monday that it has been registered as an electronic money institution (EMI) in France. This pivotal license grants the company authorization to operate as a compliant stablecoin issuer under the European Union’s stringent crypto regulations.

Circle, well-known for its USD Coin, or USDC, stablecoin, shared in a statement that it received the e-money license from the ACPR (Autorité de Contrôle Prudentiel et de Résolution), France’s banking industry regulator.

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This certification establishes Circle as the first global stablecoin issuer to achieve full compliance with the EU’s comprehensive Markets in Crypto-Assets (MiCA) regulatory framework. Circle emphasized that this approval ensures that both its USDC and Euro Coin (EURC) tokens are now issued in the EU, fully adhering to MiCA’s stringent regulations for stablecoins. Furthermore, the company announced the opening of its Circle Mint in France, enabling businesses within the country to mint and redeem Circle stablecoins.

“Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins,” Jeremy Allaire, Circle’s co-founder and CEO, stated in a statement released on Monday. “Our adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance,” Allaire added.

Stablecoins are a unique type of cryptocurrency designed to be pegged to traditional assets, typically government-issued currencies like the U.S. dollar. Investors favor stablecoins to mitigate the volatility inherent in other cryptocurrencies, such as Bitcoin.

Stablecoins play a crucial role in facilitating swift trading in and out of cryptocurrencies, providing users with a reliable alternative to relying on fiat currencies held in bank accounts.

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Key Takeaways:

This news represents a significant step forward for the stablecoin industry and the broader crypto market globally. It indicates a shift toward greater regulatory clarity and acceptance of cryptocurrencies in mainstream financial systems.

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Brian Adams
Brian Adams
Brian Adams is a technology writer with a passion for exploring new innovations and trends. His articles cover a wide range of tech topics, making complex concepts accessible to a broad audience. Brian's engaging writing style and thorough research make his pieces a must-read for tech enthusiasts.