![Circle becomes the first stablecoin issuer in the world to comply with the MiCA regulation Circle becomes the first stablecoin issuer in the world to comply with the MiCA regulation](https://cryptoast.fr/wp-content/uploads/2024/07/circle-devient-premier-emetteur-stablecoins-monde-conformer-reglement-mica.jpg)
Circle marks a major milestone in the European crypto ecosystem by becoming the first stablecoin issuer to comply with the new EU-wide MiCA (Markets in Crypto Assets) regulation. In parallel, Circle has made its Circle Mint solution available to professionals in Europe, doubly opening the race for regulated stablecoins within the European Union.
Circle Inaugurates MiCA Regulation with its USDC and EURC
The MiCA regulation had barely come into force via its sections relating to the issuance of stablecoins when Circle, the company issuing USDC, announced that it had become the first issuer of stablecoins in the world to have complied with these new rules imposed on a European scale..
According to his press release, Circle can now issue its USDC, the second most capitalized stablecoin in the entire cryptocurrency market, as well as EURC, its stablecoin backed by the euro, in full compliance..
To do this, the American firm had to obtain approval as an electronic money institution (EME) from the Prudential Control and Resolution Authority (ACPR), the result of several months of work with regulators to comply with this new European framework.
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Jeremy Allaire, Circle’s CEO, himself welcomed the news. Indeed, by becoming the very first MiCA-aligned stablecoin issuer, Circle is now positioned as a leader on the scene of companies wishing to offer a fully regulated product on a European scale..
Circle CEO Jeremy Allaire officially announcing the company's compliance
Circle has built a sustainable, compliant and regulated infrastructure for stablecoins. Our membership in MiCA, which represents one of the most comprehensive cryptoasset regulatory regimes in the world, is an important step in the mainstream acceptance of digital currency.
Thanks to this new compliance, the Circle Mint solution, intended for professionals wishing to integrate USDC and/or EURC into their business, is now available to Circle's European customers. Thanks to the unification of these new rules, Circle Mint provides a near-instant and cost-effective way to buy or resell these stablecoins across the European market.according to Circle.
“ As digital assets become increasingly integrated into traditional finance, it is essential that we establish strong and transparent structures to promote trust and adoption, ” explains Dante Disparte, Circle's chief strategy officer and head of global policy on this occasion. ” Today’s announcement reinforces our commitment to building a more inclusive and compliant future for internet finance “.
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What concrete changes for the issuance of USDC in Europe?
Concretely, as of today, USDC and EURC circulating in Europe are all compliant with the MiCA regulation which came into force on June 30, 2024. To align with MiCA, Circle had to agree to certain rules, including the obligation to insure its euro stablecoin at parity. In doing so, 100% of the reserves used to insure the EURC are hosted via Circle France.
USDC will continue to be minted from the United States, its native land, but it will now also be minted in parallel from France to the European market.
Whether it is with respect to exchanges, market makers, brokers, institutions, banks, companies or even individuals, Circle issues and repurchases USDC and EURC directly from major European market institutions via Circle Mint France.
These stablecoins are now under the direct supervision of the ACPR, responsible for ensuring the proper application of the rules induced by the arrival of MiCA, “ the world’s first and most comprehensive crypto-asset regulatory regime ” according to Jeremy Allaire.
As the latter recalled, European citizens holding USDC can continue to use them as they wishboth to exchange them and to carry out transactions with them, or even to use them within decentralized finance (DeFi).
” For the vast majority of European users who buy, hold or sell USDC or EURC on an exchange or other crypto asset service provider product, nothing changes, ” he said.
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Result of a complex process, but necessary for Circle
Circle's alignment with MiCA regulations was made possible thanks to the support of the law firm De Gaulle Fleurance. Anne Maréchal and Julie Bader, who contributed as associated lawyers for this purpose, told us that the compliance process had proven to be complex due to the still innovative aspect of MiCA, requiring time to adaptation both for companies wishing to align with MiCA and for committed regulators.
Efforts which should, however, pay off, Circle benefiting, thanks to this compliance, from the status of the first issuer of stablecoins regulated on a European scale thanks to the MiCA regulation. Anne Maréchal told us in this regard that it is the actors who understand the importance of regulation who will succeed in the European Union..
“ Finance needs leaders to ensure investor safety. Regulation is inevitable. The future of finance will be regulation, » she explains.
With the race for stablecoin issuers wishing to benefit from the European market now open, it remains to be seen which company will follow in the footsteps of the giant Circle and its USDC. Its first rival in this section of the market will in any case not be Tether and its USDT, as explained by its CEO Paolo Ardoino, who pointed out “ serious risks for stablecoins regulated in the EU “.
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Source: press release
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