Circle Secures Registration as EMI in France, Becomes First Global Stablecoin Issuer to Comply with EU Regulations

Cryptocurrency firm Circle has made a groundbreaking achievement by securing registration as an electronic money institution (EMI) in France, allowing them to operate as a compliant stablecoin issuer under the European Union’s strict crypto laws. This milestone makes Circle the first global stablecoin issuer to achieve compliance with the EU’s regulatory framework known as Markets in Crypto-Assets (MiCA).

The approval of this license means that Circle can now issue its USDC and Euro Coin (EURC) tokens within the European Union while meeting the stablecoin regulatory obligations outlined by MiCA. Additionally, Circle is opening up its Circle Mint service to customers in France, enabling businesses to mint and redeem Circle stablecoins.

Jeremy Allaire, co-founder and CEO of Circle, expressed his satisfaction with the achievement, emphasizing the company’s commitment to building compliant and well-regulated infrastructure for stablecoins. He highlighted the significance of adhering to MiCA, which represents one of the most comprehensive crypto regulatory regimes globally, in bringing digital currency into mainstream acceptance.

The EU’s MiCA law, which came into effect in May 2023, introduced the world’s first comprehensive regulatory framework for cryptocurrency operations. Last week, provisions specifically governing stablecoins were approved, imposing stringent measures on trading volume limitations for certain stablecoins, particularly those denominated in US dollars.

As a registered EMI in France, Circle can now extend its services, including the minting and redemption of USDC through Circle Mint, not only to customers in France but also to individuals and businesses across the European Union. This expansion is made possible by the concept of “passporting” outlined in MiCA, allowing crypto businesses to offer services in one EU country and expand into other markets within the bloc.

While Circle’s achievement is commendable, additional obligations under MiCA about crypto asset service providers will become applicable by December 30, 2024, with crypto companies having until July 2026 to ensure full compliance with MiCA’s requirements.

Since its launch in September 2018, USDC has gained significant traction and now holds the position of the second-largest stablecoin globally, with a circulation amounting to $32.4 billion. Tether’s USDT remains the world’s largest stablecoin with a circulation of $112.7 billion.

Overall, Circle’s registration as an EMI in France marks a significant step towards mainstream acceptance and adoption of stablecoins within the European Union, showcasing the company’s commitment to regulatory compliance and innovation in the cryptocurrency space.