Circle, a prominent global financial technology firm, has achieved a significant milestone by becoming the first stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This compliance was made possible through the attainment of an Electronic Money Institution (EMI) license from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR).
The newly granted EMI license authorizes Circle to issue its USD Coin (USDC) and Euro Coin (EURC) stablecoins across the European Union. This development aligns Circle with MiCA’s comprehensive regulatory requirements for stablecoins, which took effect on June 30, 2024. As a result, Circle can now provide its stablecoin services throughout the EU, marking a significant step forward in the integration of digital currencies into mainstream finance.
Circle’s co-founder and CEO, Jeremy Allaire, expressed the company’s commitment to regulatory compliance and the broader adoption of digital currencies. “Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins, and our adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance,” said Allaire.
In conjunction with the EMI license, Circle has launched Circle Mint, a new service for business customers in Europe. Circle Mint France, equipped with local banking capabilities, provides near-instant and cost-effective access to mint and redeem USDC and EURC throughout the European market. This initiative is designed to facilitate easier and more efficient transactions for businesses, enhancing the usability and acceptance of stablecoins.
Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, highlighted the broader implications of this achievement for the digital financial ecosystem. “Achieving MiCA compliance through our French EMI license is a significant step forward, not just for Circle, but for the entire digital financial ecosystem in Europe and beyond,” said Disparte. “As digital assets become increasingly integrated into the mainstream financial landscape, it is essential that we establish robust, transparent frameworks to promote trust and adoption.”
The MiCA framework, which was officially enacted in May 2023, sets out rigorous standards for cryptocurrency operations within the EU, including specific provisions for stablecoins. These regulations aim to ensure investor protection, market integrity, and the stability of financial systems involving digital assets.
Circle’s proactive approach to meeting these high regulatory standards positions it as a leader in the stablecoin market. Among the top 10 stablecoins by market capitalization, USDC is currently the only one that is MiCA-compliant. This compliance not only reinforces Circle’s dedication to security and transparency but also sets a precedent for other crypto firms aiming to operate within the EU’s regulatory landscape.
