Stablecoin issuer Circle announced on Monday that it has obtained a license and approval to issue stablecoins under the Markets in Crypto Assets (MiCA) regulatory framework. Circle CEO Jeremy Allaire stated at a press conference in Paris that Circle is the first stablecoin issuer worldwide to comply with the MiCA regulatory framework, which came into effect on July 1. Circle will be able to issue the USD stablecoin USDC and the Euro stablecoin EURC under this regulatory framework.
This move comes after Circle gradually complied with regulatory requirements in the stablecoin field. In December last year, Circle obtained an Electronic Money Institution (EMI) license in France and appointed a business manager for France. Now, the company will launch MiCA-compliant stablecoins in Europe through its French entity.
According to data from The Block, USDC is the second-largest stablecoin pegged to the US dollar, accounting for 20% of the total stablecoin supply as of June 28.
MiCA Regulation:
The Markets in Crypto Assets (MiCA) is a comprehensive regulatory framework established by the European Union to establish unified cryptocurrency regulation among its member states. MiCA was approved by the European Parliament in April 2023 and is currently being implemented in stages. As part of this framework, it requires stablecoins issued in the region to adhere to stricter regulatory requirements. Other provisions will be gradually implemented over time, including rules applicable to stablecoins and a requirement for full compliance with all aspects of the regulation by the end of this year. Stablecoin issuers are required to comply with certain MiCA requirements starting from June 30.
Stablecoin issuers operating outside the European Union but providing services to EU residents are also required to comply with MiCA regulations. However, there are still some uncertainties regarding the implementation of MiCA. Some stablecoin issuers have expressed concerns about how MiCA applies to these assets. Last month, Paolo Ardoino, CEO of stablecoin USDT issuer Tether, told The Block that MiCA “includes several problematic requirements” that could make the work of stablecoin issuers extremely complicated and increase the fragility and risks of operating EU-licensed stablecoins.
Cryptocurrency exchange Binance announced in early June that it would start restricting the use of “unauthorized” stablecoins in Europe before June 30, although the company did not mention Tether’s USDT stablecoin. Binance CEO Richard Teng later clarified on the X platform that “Binance will not immediately delist any unauthorized stablecoins, but will limit their availability to users in the European Economic Area (EEA) on certain products.”
Richard Teng also shared on Monday on social media platforms the news that USDC has become a regulated stablecoin in the European Economic Area and stated that USDC will continue to be available to their users in the EEA on Binance’s products. Teng further stated:
[Image] [Image] Source:Richard Teng
Data source
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