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Circle has secured a license to function as a stablecoin issuer within the European Union, ensuring adherence to the EU’s new regulatory framework (MiCA). The stablecoins USDC and EURC are now acknowledged as fully legal digital tokens in Europe.
Jeremy Allaire, Co-Founder and CEO of Circle, revealed that the company has acquired an Electronic Money Institution (EMI) license from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR), making it the first licensed stablecoin issuer in the EU.
Allaire stated that the regulatory endorsement under the MiCA framework enables Circle’s USDC and EURC stablecoins to be the initial digital tokens fully compliant with the new regulatory standards. He mentioned that European users are no longer required to exchange or convert their stablecoins into other digital assets to meet the new EU regulatory guidelines.
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Allaire highlighted that the selection of France as the company’s European headquarters was intentional, referencing the nation’s forward-thinking approach to digital asset regulation. He also acknowledged the historical importance of revising the regulatory framework for digital assets in the EU, emphasizing its influence on global crypto adoption.
Under the MiCA legislation, effective from June 30, 2024, essential regulations for stablecoin issuers include:
- mandatory registration and licensing as a crypto-asset service provider (CASP) or electronic money institution (EMI);
- maintaining reserve assets equivalent to the obligations of issued stablecoins;
- undergoing independent audits and submitting financial reports;
- implementing risk management systems to mitigate financial and operational risks;
- adhering to stringent KYC, AML, and CFT requirements;
- providing comprehensive information about their operations;
- ensuring stablecoin holders can redeem their tokens at any time at face value;
- complying with restrictions on the total volume of issued stablecoins.
Cryptocurrency exchanges such as Uphold, Binance, OKX, and Kraken have begun modifying their stablecoin listing policies for EU users in anticipation of the MiCA regulatory requirements.
Сообщение Circle Became First Licensed Stablecoin Issuer in Europe появились сначала на CoinsPaid Media.
