Circle, a renewed crypto firm best known for its stablecoin USD Coin (USD), has successfully registered as an electronic money institution (EMI) in France. Circle now has the authorization it needs to create stablecoins in accordance with the strict guidelines governing cryptocurrencies in the European Union thanks to this registration, which is considered a pioneering step and big news in the crypto industry.
Namely, the French banking sector regulator ACPR, awarded Circle an e-money license. Thanks to this, Circle has become the first stablecoin issuer in the world to comply with the historic Markets in Crypto-Assets, or MiCA, regulatory framework established by the European Union.
According to Circle, with this approval, its USDC and EURC tokens are now being issued in the EU in accordance with MiCA’s regulatory requirements for stablecoins. The company announced that it will also open up its Circle Mint, a tool for accessing funds more securely (which allows businesses to mint and redeem Circle stablecoins), in France.
Introduced in September 2018, USD Coin, or USDC, is the second-largest stablecoin in the world with $32.4 billion worth of tokens in circulation. It was created by Circle and cryptocurrency exchange Coinbase, which is well-known for its stablecoin. With $112.7 billion in circulation, Tether’s USDT, a digital token built on multiple blockchains, is the largest stablecoin in the world. With the official implementation of MiCA in the EU in May 2023, Circle’s e-money license marks a significant advancement in the mainstreaming and acceptance of digital currency.
Stablecoins are a kind of cryptocurrency that is linked to traditional assets, usually currencies issued by governments. They are also an important means of swiftly switching between cryptocurrencies and enabling users to trade without depending on fiat money kept in bank accounts. They are held by investors as a hedge against the volatility of other cryptocurrencies, such bitcoin. Regulations set forth by EU legislation dictate how businesses must safeguard investors and ensure that their platforms are impervious to manipulation.
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