Stablecoin issuer Circle announced on Monday (1st) that it has obtained the license and approval to issue stablecoins under the regulatory framework of the Markets in Crypto Assets (MiCA). Circle CEO Jeremy Allaire stated at a press conference held in Paris that Circle is the world’s first stablecoin issuer to comply with the MiCA regulatory framework, which took effect on July 1st. Circle will be able to issue the US dollar stablecoin USDC and the Euro stablecoin EURC under this regulatory framework.
Source: Jeremy Allaire
This move comes after Circle gradually complied with the regulatory compliance requirements in the stablecoin field. In December last year, Circle obtained the Electronic Money Institution (EMI) license in France and appointed a French business head. Now, the company will launch stablecoins compliant with MiCA regulations through its French entity in Europe.
According to data from The Block, USDC is the second-largest dollar-pegged stablecoin, accounting for 20% of the total stablecoin supply as of June 28th.
Source: The Block
The MiCA bill
The Markets in Crypto Assets (MiCA) is a comprehensive regulatory framework established by the European Union to create unified cryptocurrency regulation among its member states. MiCA was approved by the European Parliament in April 2023 and is currently being implemented in phases.
As part of the framework, it requires stablecoins issued in the region to pass through more stringent regulatory requirements. Other provisions will be gradually implemented over time, including some rules applicable to stablecoins, and require full compliance with all aspects of the regulations by the end of this year. Stablecoin issuers must start complying with certain requirements of MiCA from June 30th.
Stablecoin issuers operating outside the EU but providing services to EU residents also need to comply with MiCA regulations. However, there are still some uncertainties regarding the implementation of MiCA.
Some stablecoin issuers are concerned about how MiCA will apply to these assets. Last month, Paolo Ardoino, CEO of the stablecoin USDT issuer Tether, told The Block that MiCA “contains several problematic requirements” that could not only make the work of stablecoin issuers extremely complicated but also make the operation of EU-authorized stablecoins very fragile and riskier.
Cryptocurrency exchange Binance stated in early June that its platform would start restricting the use of “unauthorized” stablecoins in Europe before June 30th, although the company did not mention Tether’s USDT stablecoin. Binance CEO Richard Teng later clarified on the X platform: “Binance will not immediately delist any unauthorized stablecoins, but will restrict their availability only on certain products for users in the European Economic Area (EEA).”
Richard Teng also shared on social media platforms on Monday about the news of USDC becoming a regulated stablecoin in the European Economic Area and stated that USDC will continue to be offered to their EEA users in Binance’s products. Teng continued:
Source: Richard Teng
Data Source