Circle has become the first global stablecoin issuer to obtain an Electronic Money Institution (EMI) license, a crucial step for offering dollar- and euro-pegged crypto tokens within the European Union (EU).
This license, granted under the Markets in Crypto Assets (MiCA) regulatory framework, positions Circle ahead of its competitor, Tether, in capturing market share among the EU’s 450 million inhabitants.
Circle (USDC) and (EURC) have successfully complied with the EU’s new stablecoin regulations, known as MiCA. Starting from July 1, these stablecoins will be officially available for issuance to European customers.
Stablecoins play a vital role in the digital asset market, facilitating trading on exchanges and increasingly serving as a medium for transactions and remittances.
Circle’s USDC, valued at $32 billion, holds the second-largest position in the stablecoin market, though the gap between it and the market leader, Tether’s USDT, at $110 billion, has been expanding.
Circle EURC Stablecoin Follow MiCA Law
With the EMI license secured from the French banking regulatory authority, Circle Mint France will now “onshore” the issuance of its euro-denominated EURC stablecoin within the EU, with USDC issuance also taking place under the same entity.
This move follows the implementation of MiCA’s stablecoin regulations on June 30th, which prompted some crypto exchanges to delist euro-denominated stablecoins, including Tether’s EURT.
The inclusion of stablecoins within MiCA was primarily motivated by apprehensions surrounding the possible incursion of major tech firms like Meta’s Diem (previously known as Libra) into the financial sector, this triggered five years of intensive policy development in Europe, according to Dante Disparte.
Disparte expressed a sense of connection to MiCA, acknowledging its acceleration due to his previous involvement with Libra Diem. He sees MiCA as both a validation of the industry’s permanence and a clear signal that shortcuts are no longer viable, particularly in the world’s third-largest economy. This signifies an end to the era of operating in regulatory havens or with limited transparency, and a new era demanding full access for consumers and market participants.
Croatia Rules to Attract Crypto Activity Ahead of MiCA Law
Croatia today made a significant announcement by swiftly establishing clearly stated rules to attract crypto activity to the country and facilitate a move to become an EU passporting hub.
While the implementation of the European Union’s crypto law, MICA, will take time, some EU nations including France and Croatia are already taking the initiating steps to apply the law’s provisions to their markets.
In addition, Croatia’s financial regulators have adopted a rulebook directing crypto firms to register within the 60-day mark, serving as a transitional era before MiCA goes live in 2024 in an attempt to start ahead of the law’s regulation.
