Circle has become licensed and approved to issue stablecoins under the Markets in Crypto Assets (MiCA).
Circle is the first global stablecoin issuer to become compliant with MiCA effective July 1, CEO Jeremy Allaire said in a Paris-based press conference. Circle will be able to issue its stablecoins USDC and EURC under the regulatory framework.
The move comes after Circle's incremental steps to adhere to regulatory compliance in the stablecoin space. In December, Circle received a digital asset regulatory license in France and appointed a Head of French Operations. The firm will now launch its MiCA-compliant stablecoins in Europe under its French entity.
USDC is the second largest USD-pegged stablecoin, drawing in 20% of the total stablecoin supply as of June 28, according to The Block's Data Dashboard.
Markets in Crypto Assets (MiCA) is a comprehensive regulatory framework established by the European Union to create uniformity in crypto regulation among its members. MiCA was approved by the European Parliament in April 2023 and the rules are being implemented in stages.
As part of that framework, it requires stablecoins issued in the region to pass increased regulatory requirements. Other provisions, including some that apply to stablecoins are being phased in over time, with full compliance for all aspects required by the end of the year. Stablecoin issuers must start complying with certain MiCA requirements beginning June 30.
Stablecoin issuers operating outside the EU but providing services to EU residents will also need to comply with MiCA regulations. There is still some confusion on MiCA's implementation, the Block previously reported.
Some stablecoin issuers have raised concerns over how MiCA applies to those assets. Last month, Tether CEO Paolo Ardoino told The Block that MiCA "contains several problematic requirements."
"These requirements could not only render the job of a stablecoin issuer extremely complex but also make EU-licensed stablecoins extremely vulnerable and riskier to operate," Ardoino said.
Crypto exchange Binance said it would begin restricting access to "unauthorized" stablecoins in Europe by June 30, though it did not mention Tether's USDT stablecoin, which is the largest by circulation.
Binance CEO Richard Teng clarified in an X post in June that "Binance won't delist any unauthorized stablecoins on spot but will limit their availability for [European] users only on certain products," adding "updates on regulated stablecoins will be shared soon."
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