Circle has achieved a significant milestone by becoming the first global stablecoin issuer to obtain an Electronic Money Institution (EMI) license. This license is crucial for offering dollar- and euro-pegged crypto tokens within the European Union under the new Markets in Crypto Assets (MiCA) regulatory framework.
The achievement positions Circle ahead in the race for market share among the EU’s 450 million inhabitants, with its USDC stablecoin trailing behind Tether’s USDT in global prominence.
Stablecoins play a vital role in the digital asset ecosystem, facilitating trading on exchanges and increasingly serving in transactions and remittances. Circle’s USDC, valued at $32 billion, is the second-largest stablecoin, although it lags significantly behind Tether’s $110 billion USDT.
Circle’s subsidiary, Circle Mint France, empowered by the French banking regulatory authority, will oversee the issuance of its euro-denominated stablecoin, EURC, within the EU. Simultaneously, USDC will be issued from the same entity.
The introduction of MiCA’s stablecoin regulations, effective June 30, prompted several crypto exchanges to delist euro-denominated stablecoins like Tether’s EURT. MiCA’s comprehensive framework was spurred by concerns over tech giants like Meta’s Diem (formerly Libra) entering financial markets, leading to extensive policy development over five years in Europe.
Dante Disparte, Circle’s head of policy and formerly involved in the Libra project, expressed his perspective on MiCA, noting its validation of the industry’s longevity while emphasizing the end of regulatory leniency in one of the world’s largest economies.
“MiCA is both vindicating of the industry and its permanence, but it’s also clear that there is no more shortcuts, at least not in the third-largest economy in the world,” Disparte commented in an interview. “Gone are the days where you could operate in a regulatory haven or in the shadows and then expect to have liberal and free access to consumers and market participants.”
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