Circle Secures First EU Stablecoin License Under MiCA, Paving Way for USDC and EURC in Europe

Circle, the global financial technology firm behind USD Coin (USDC) and Euro Coin (EURC), has become the first major stablecoin issuer to achieve compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This milestone was announced on July 1, 2024, as MiCA’s stablecoin rules came into effect.

The company secured an Electronic Money Institution (EMI) license from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR), allowing it to issue both USDC and EURC as fully-compliant dollar and euro stablecoins in the European market. This achievement positions Circle at the forefront of regulated digital currencies in one of the world’s largest economic blocs.

Jeremy Allaire, Co-Founder and CEO of Circle, emphasized the significance of this development: “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.”

As part of its European expansion, Circle has launched Circle Mint France, providing near-instant and cost-effective access for business customers to mint and redeem USDC and EURC throughout the European market. This move is expected to enhance the company’s competitive position against rival stablecoin issuers, particularly Tether’s USDT, which currently leads the market.

The implementation of MiCA has prompted changes across the crypto industry in Europe. Some exchanges, including Uphold and Bitstamp, have delisted certain stablecoins in anticipation of the new regulations. Binance, the world’s largest centralized exchange, has adopted a “sell-only” strategy for some stablecoin products in the European market.

Circle’s compliance with MiCA is seen as a significant step towards mainstream adoption of regulated digital currencies. Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, stated, “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.”