Circle is claiming bragging rights as the first global stablecoin issuer to comply with MiCA.
Before the rules took effect on June 30, some exchanges delisted euro-denominated stablecoins, such as Tether’s EURT.
Stablecoin issuer Circle has secured an Electronic Money Institution (EMI) license, a prerequisite to offering dollar- and euro-pegged crypto tokens in the European Union (EU) under the Markets in Crypto-Assets (MiCA) regulatory framework.
Circle, whose USDC is the largest dollar stablecoin after rival Tether’s market-leading USDT, is claiming bragging rights as the first global stablecoin issuer to comply with MiCA. Before rules took effect on June 30, some crypto exchanges delisted euro-denominated stablecoins, such as Tether’s EURT.
Armed with an EMI license from the French banking regulatory authority, Circle Mint France will “onshore” the issuance of its euro-denominated EURC stablecoin to the EU and issue USDC for customers in the 27-nation trading bloc from the same entity, the company said.
MiCA’s comprehensive stance on stablecoins was catalyzed by the specter of big tech, like Meta’s Diem (formerly Libra) initiative, entering financial markets. That prompted five years of concerted policy development in Europe, said Circle’s head of policy, Dante Disparte, who was involved in the Libra project.
“Personally, I feel a little bit of a semi-parental relationship with MiCA because in some ways it was accelerated by my prior life and my prior project, Libra Diem,” Disparate said in an interview. “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. 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.”
Read more: EU’s Restrictive Stablecoin Rules Take Effect Soon and Issuers Are Running Out of Time
