Circle, a global stablecoin issuer, has become the first company to obtain an Electronic Money Institution (EMI) license in the European Union under the new Markets for Crypto-Assets (MiCA) regulatory framework. This license allows Circle to offer dollar- and euro-pegged cryptocurrencies in the EU. With this achievement, Circle is well-positioned to capture a significant market share among the 27-nation trading bloc’s population of 450 million.
Stablecoins are essential in the digital asset market as they facilitate trading on exchanges and are increasingly used for transactions and remittances. Although Circle’s USDC stablecoin is the second largest with $32 billion in circulation, it still lags behind Tether’s USDT, which currently holds the top spot with $110 billion.
Circle Mint France, with the license obtained from the French banking regulatory authority, will issue its Euro-denominated stablecoin, EURC, and USDC to the EU market. This move comes in response to the implementation of MiCA’s stablecoin rules, which led some crypto exchanges to delist Euro-denominated stablecoins like Tether’s EURT.
MiCA’s comprehensive approach to stablecoins was driven by concerns over major tech companies like Meta entering the financial markets through initiatives like Diem (formerly Libra). This prompted five years of concerted policy development in Europe. Dante Disparte, head of policy at Circle, which is involved in the Libra project, highlights the significance of this milestone.
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