HomeCryptoCircle, a cryptocurrency company, receives regulatory approval in France for its stablecoin.

Circle, a cryptocurrency company, receives regulatory approval in France for its stablecoin.

-


Circle Receives E-Money License in France for Compliance with EU Crypto Laws

Cryptocurrency firm Circle has achieved a significant milestone in the world of digital currency by becoming the first global stablecoin issuer to obtain compliance with the European Union’s tough crypto laws. The company announced on Monday that it has been granted an e-money license by France’s banking industry regulator, Autorite de Controle Prudentiel et de Resolution (ACPR), allowing it to operate as an electronic money institution (EMI) in the country.

Circle, known for its USD Coin (USDC) stablecoin, stated that this license will enable it to issue both USDC and Euro Coin (EURC) tokens in the EU while complying with the EU’s Markets in Crypto-Assets (MiCA) regulatory framework. This move positions Circle as a key player in the stablecoin market, providing businesses with the ability to mint and redeem stablecoins in a compliant manner.

Jeremy Allaire, co-founder and CEO of Circle, expressed the company’s commitment to building a regulated infrastructure for stablecoins, emphasizing the importance of adhering to MiCA regulations. He believes that this milestone will help bring digital currency into mainstream acceptance and scale.

Stablecoins are a type of cryptocurrency that are pegged to traditional assets, such as government-issued currencies like the U.S. dollar, to provide stability and avoid the volatility often associated with other cryptocurrencies like Bitcoin. They also serve as a convenient way for users to trade in and out of cryptocurrencies quickly without relying on fiat currencies.

The EU’s MiCA regulatory framework, which came into force in May 2023, sets out comprehensive rules for cryptocurrency companies to ensure investor protection and prevent market manipulation. The recent approval of provisions governing stablecoins imposes strict limitations on trading certain stablecoins, particularly those denominated in U.S. dollars.

As a France-registered EMI, Circle can now offer its services not only in France but throughout the EU, thanks to the passporting mechanism allowed under MiCA. The remaining obligations under MiCA for crypto asset service providers will come into effect by December 30, 2024, with full compliance required by July 2026.

Launched in 2018, USDC has quickly become the second-largest stablecoin globally, with over $30 billion worth of tokens in circulation, trailing only behind Tether’s USDT. Circle’s achievement in obtaining compliance with EU regulations marks a significant step forward for the company and the stablecoin industry as a whole.

LATEST POSTS

XRP Outperforms BTC, SOL, and ETH on Binance, Coinbase, and Kraken in Key Metric

XRP Surpasses Bitcoin, Solana, and Ethereum in Trade Volume on Major Exchanges The cryptocurrency market is buzzing with excitement as XRP, the digital asset associated...

Asset manager predicts that Trump administration could designate Bitcoin as a strategic reserve asset

Bitcoin's Potential as a Strategic Reserve Asset Under a Future Trump Administration Asset manager Bryan Courchesne recently made a bold prediction on CNBC, suggesting that...

What crypto policies might potential Vice Presidents under Kamala Harris bring to the table?

Potential Democratic and Republican Candidates for the 2024 Presidential Election The 2024 presidential race is heating up as experts predict that United States Vice President...

Kaiko predicts that Ethereum price will be influenced by ETF inflows in the near future

Spot Ether ETF Inflows Expected to Impact Price Sensitivity, Says Kaiko The launch of spot Ether ETFs is set to shake up the crypto market...

Most Popular