Stablecoin Issuer Circle Earns License to Issue USDC and EURC

TL;DR

• Circle has become the first stablecoin issuer to become compliant with MiCA.

• The company can now issue USDC and EURC stablecoins under the new regulatory framework.

Circle Obtains Electronic Money Institution License Under EU's MiCA Crypto Law

Circle has become the first approved and licensed stablecoin issuer under the Markets in Crypto Assets (MiCA).

CEO Jeremy Allaire revealed this latest development in a Paris-based press conference on Monday, adding that the license is effective starting July 1st. Thanks to this latest development, Circle can issue its stablecoins USDC and EURC under the regulatory framework.

The company was granted this license after it took steps to adhere to regulatory compliance in the stablecoin space. In December, Circle was issued a digital asset regulatory license in France, with the company also appointing a  Head of French Operations. Circle will now launch its MiCA-compliant stablecoins in Europe under its French entity.

USDC is currently the second-largest USD-pegged stablecoin and accounts for 20% of the total stablecoin supply. 

The European Parliament approved the Markets in Crypto Assets (MiCA) framework in April 2023, with the rules being implemented in stages. MiCA is a comprehensive regulatory framework that seeks to create uniformity in crypto regulation among EU members. 

The framework requires stablecoins issued in Europe to pass increased regulatory requirements. Stablecoins issuers are expected to comply with the regulations by the end of the year. Stablecoin issuers are required to start complying with certain MiCA requirements beginning June 30.