Circle's Landmark Achievement in France

Circle, a renowned cryptocurrency firm, has achieved a significant milestone by securing registration as an electronic money institution (EMI) in France.

This pivotal move grants Circle a crucial license to operate as a compliant stablecoin issuer under the European Union's rigorous crypto laws.

According to a CNBC report, this approved license positions Circle as the first global stablecoin issuer to achieve compliance with the European Union's regulatory framework known as Markets in Crypto-Assets (MiCA).

Compliance with MiCA Framework

The MiCA framework considered the cornerstone of the EU's approach to governing cryptocurrencies, sets out comprehensive rules and obligations for crypto companies. These rules ensure investor protection and safeguard against market manipulation.

Circle's acceptance into the MiCA regulatory framework means that both its USDC and Euro Coin (EURC) tokens can now be issued within the European Union while meeting the stablecoin regulatory obligations outlined by MiCA.

Expanding Services with Circle Mint

Additionally, Circle is opening up its Circle Mint service. This service enables businesses to mint and redeem Circle stablecoins, which are now available to customers in France.

Expressing his satisfaction with the achievement, Jeremy Allaire, co-founder and CEO of Circle, emphasized the company's longstanding commitment to building compliant and well-regulated infrastructure for stablecoins. He stated:

"Our adherence to MiCA, which represents one of the world's most comprehensive crypto regulatory regimes, is a huge milestone in bringing digital currency into mainstream scale and acceptance."

The Significance of MiCA Law

The EU's MiCA law, officially enacted in May 2023, introduced the world's first comprehensive regulatory framework for cryptocurrency operations. Last week, provisions specifically governing stablecoins were approved.

These provisions impose stringent measures on trading volume limitations for certain stablecoins, particularly those denominated in US dollars.

As a registered EMI in France, Circle can now extend its services, including the minting and redemption of USDC through Circle Mint, to customers in France and individuals and businesses across the European Union.

Future Compliance Deadlines

While Circle's achievement is commendable, additional obligations under MiCA regarding crypto asset service providers will become applicable by December 30, 2024. Crypto companies will then have until July 2026 to ensure full compliance with MiCA's requirements.

Since its launch in September 2018 by Circle and crypto exchange Coinbase, USDC has gained significant traction and now holds the position of the second-largest stablecoin globally.

According to CoinGecko data, USDC's circulation amounts to $32.4 billion, trailing only Tether's USDT, which holds the title of the world's largest stablecoin with a circulation of $112.7 billion.