Circle Achieves Compliance with EU Crypto Regulations, Paving the Way for Global Stablecoin Expansion

On Tuesday, 2 July, 2024, Circle, the issuer of USD Coin (USDC) and Euro Coin (EURC) stablecoins, announced a groundbreaking achievement in the European crypto sector. Circle has become the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.

This landmark compliance was facilitated by Circle obtaining an Electronic Money Institution (EMI) license from the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the French financial regulator. This pivotal license allows Circle to officially issue both USDC and EURC within the EU, adhering to MiCA regulations that took effect on July 1, 2024. MiCA represents a comprehensive regulatory regime governing crypto-assets, including specific provisions for stablecoins. By December, the regulations for crypto service providers will also be operational, marking a significant shift in the European crypto landscape.

Jeremy Allaire, co-founder and CEO of Circle, hailed the licensing achievement as a “huge milestone in bringing digital currency into mainstream scale and acceptance.” He added, “By working closely with French and EU regulators, we are now able to offer both USDC and EURC as fully-compliant dollar and euro stablecoins to the European market, unlocking the enormous potential of digital assets to transform finance and commerce.”

Circle’s proactive steps in securing regulatory compliance underscore its commitment to advancing digital finance and fostering trust in stablecoins across Europe. This development not only highlights the evolving regulatory environment but also marks a significant step towards mainstream adoption of digital currencies in the global financial ecosystem.

Circle’s journey towards this milestone has been underscored by its vision of a future where digital dollars securely facilitate a more prosperous global economy. The company created USDC, a digital currency backed by the US dollar and always redeemable 1:1, with a mission to transform how money moves around the world. By working closely with regulators to ensure compliance and surpass standards for stablecoins, USDC has the potential to change the global financial landscape fundamentally.

Launched in 2018 in partnership with crypto exchange Coinbase, Circle’s USDC is the second-largest stablecoin with a market cap of approximately $32.5 billion. Although it still trails behind market leader USDT, which boasts a market cap of around $112.6 billion, this regulatory milestone positions Circle for significant growth and influence in the European market.