Circle Secures First EU Stablecoin License Under MiCA Rules

Circle, the company behind the stablecoin USD Coin (USDC), has secured an Electronic Money Institution (EMI) license under the European Union’s new Markets in Crypto Assets (MiCA) regulatory framework. This notable milestone allows the firm to officially offer USDC and EURC crypto tokens to European customers with effect from July 1st. 

Circle Secures First EU Stablecoin License 

The firm disclosed this development in a Monday statement stating that it has become the first global stablecoin issuer to achieve compliance with the European Union’s landmark Markets in Crypto-Assets (MiCA) regulatory framework.

Last year, EU regulators enacted the world’s first comprehensive cryptocurrency law known as MiCA which outlines measures to ensure investor protections and the integrity of platforms against manipulation. 

With this approval, Circle will issue both USDC and Euro Coin (EURC) in Europe in compliance with MiCA’s stablecoin regulatory obligations. The company added it is also opening up its Circle Mint, which allows businesses to mint and redeem Circle stablecoins in France.

The Electronic Money Institution (EMI) license was granted by the French banking regulatory authority. This development positions Circle to capture a huge market share in the 27-nation trading bloc, which includes 450 million people. 

Circle’s Position in the Market

Launched in September 2018 by Circle, USDC is now the world’s second-largest stablecoin, with $32.4 billion in circulation according to data from CoinGecko, standing just behind Tether’s leading USDT, which has $112.7 billion in circulation. 

It is worth noting that out of the top 10 stablecoins by market capitalization, only USDC is currently MiCA-compliant. This milestone underscores Circle’s commitment to regulatory compliance for dollar and euro stablecoins.  

Circle’s CEO, Jeremy Allaire, reflected on the company’s journey since its founding 11 years ago. He also mentioned the growth of USDC saying the stablecoin surged 1000% in two years, from 400 million to 4 billion to 40 billion, and the crypto infrastructure advanced quickly. 

“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”, he added.