Circle Secures EMI License in France, Becoming the First Global Stablecoin Issuer to Comply with MiCA

Circle, a prominent cryptocurrency firm renowned for its USD Coin (USDC) stablecoin, announced a significant milestone on Monday as it secured an electronic money institution (EMI) license in France.

Cryptocurrency firm Circle announced on Monday that it has secured an electronic money institution (EMI) license in France. This regulatory approval makes Circle, known for its USD Coin (USDC) stablecoin, the first global stablecoin issuer to achieve compliance with the European Union's stringent Markets in Crypto-Assets (MiCA) regulatory framework.

The EMI license, granted by France's banking industry regulator, Autorité de Contrôle Prudentiel et de Résolution (ACPR), will allow Circle to operate as a compliant stablecoin issuer within the EU. Both USDC and the recently introduced Euro Coin (EURC) tokens will be issued in accordance with MiCA's stablecoin regulatory requirements, Circle said.

"Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins," Jeremy Allaire, co-founder and CEO of Circle, said in a statement. "Our adherence to MiCA, one of the most comprehensive crypto regulatory regimes in the world, marks a huge milestone in bringing digital currency into mainstream scale and acceptance."

Stablecoins like USDC are designed to offer a stable value, mitigating the volatility often associated with other cryptocurrencies such as Bitcoin. They provide investors with a reliable medium to transact swiftly without the fluctuating risks. These digital assets play a crucial role in facilitating quick trades and transactions, minimizing the reliance on traditional fiat currencies held in bank accounts.

MiCA, the EU's landmark crypto regulatory framework, officially came into force in May 2023, with specific provisions governing stablecoins being approved recently. Notably, these measures include stringent limitations on the volume and value of transactions for non-euro-denominated stablecoins used as a "means of exchange."

Circle's compliance with MiCA not only allows it to operate in France but also enables it to "passport" its services throughout the entire European Union, thanks to the regulatory harmonization across member states.

Further MiCA obligations concerning crypto asset service providers will become enforceable by December 30, 2024, while full compliance is required by July 2026.

Established in 2018 through a partnership between Circle and Coinbase, USDC has rapidly ascended to become the world's second-largest stablecoin by circulation. According to CoinGecko, it is currently valued at $32.4 billion.

With this latest regulatory approval, Circle is set to amplify its presence within the global digital currency landscape, solidifying its role as a pioneer in compliant stablecoin issuance under rigorous EU standards.

For more updates on Circle's regulatory advancements and the evolving crypto regulatory landscape, follow our continuing coverage.

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