Circle Becomes First Global Stablecoin Issuer to Comply with EU’s MiCA Regulations

Circle, the issuer of the USDC and EURC stablecoins, has achieved a significant milestone by becoming the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This accomplishment was enabled through Circle obtaining an Electronic Money Institution (EMI) license from France’s banking regulatory authority, the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

Jeremy Allaire, Circle’s co-founder and CEO, emphasized the importance of this achievement, stating, “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.”

MiCA, which took effect in June 2023, provides a robust regulatory framework for crypto assets across the European Union. It offers clear guidelines for crypto firms while implementing stricter rules on certain aspects of the industry. Circle’s compliance allows it to issue both USDC and EURC stablecoins in the European market, with USDC pegged to the U.S. dollar and EURC pegged to the euro.

Circle has launched Circle Mint for business customers in Europe, providing a platform to mint and redeem these stablecoins. This new service is expected to enhance the use of stablecoins for trading, transactions, and remittances across the region.

Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, highlighted the broader implications of this achievement, saying, “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.”

USDC is the second-largest stablecoin by market capitalization, trailing only Tether’s USDT. With a current market cap of $32.4 billion, USDC continues to grow despite facing competition from USDT, which holds a market cap of $112.6 billion and maintains a higher trading volume.

MiCA’s introduction followed years of policy development aimed at creating a comprehensive regulatory stance on stablecoins, partly driven by concerns over big tech companies like Meta (formerly Facebook) entering financial markets with initiatives such as Diem (formerly Libra).

Circle’s proactive approach to regulatory compliance not only underscores its commitment to security, transparency, and oversight but also positions it to drive the mainstream adoption of regulated digital currencies. With the new EMI license and adherence to MiCA, Circle is well-placed to expand its market presence and support the evolving digital financial landscape in Europe.