Circle, a prominent cryptocurrency firm known for its USD Coin (USDC) stablecoin, announced on Monday that it has registered as an electronic money institution (EMI) in France. This registration grants Circle a key license to become a compliant stablecoin issuer under the European Union’s stringent crypto regulations.

Key Points

• EMI License: Circle received the e-money license from France’s banking regulator, Autorite de Controle Prudentiel et de Resolution (ACPR).
• MiCA Compliance: This license makes Circle the first global stablecoin issuer to comply with the EU’s Markets in Crypto-Assets (MiCA) regulatory framework.
• Stablecoin Issuance: Both USDC and Euro Coin (EURC) are now issued in the EU in compliance with MiCA’s regulations.
• Circle Mint in France: Circle is also launching Circle Mint in France, enabling businesses to mint and redeem Circle stablecoins.

Regulatory Milestone

Jeremy Allaire, co-founder and CEO of Circle, emphasized the significance of this achievement, highlighting that adherence to MiCA represents a major step in bringing digital currency into mainstream acceptance and scale.

EU’s MiCA Framework

• Comprehensive Regulation: MiCA, which became law in May 2023, is the world’s first comprehensive regulatory framework for cryptocurrencies.
• Stablecoin Rules: Provisions for stablecoins, approved last week, impose strict limitations on non-euro-denominated stablecoins used as a “means of exchange” if they exceed specified transaction thresholds.
• Passporting Services: As a France-registered EMI, Circle can offer its services across the entire EU, leveraging the “passporting” rights within the bloc.

Compliance Timeline

• MiCA Implementation: Full compliance for crypto asset service providers under MiCA is required by December 30, 2024.
• Transition Period: Companies will have until July 2026 to fully comply with all MiCA regulations.

Circle’s Market Position

Launched in September 2018 by Circle and crypto exchange Coinbase, USDC is the second-largest stablecoin globally, with $32.4 billion in circulation, according to CoinGecko. It follows Tether’s USDT, the largest stablecoin with $112.7 billion in circulation.

Circle’s registration as an EMI in France and compliance with the MiCA framework mark significant advancements for the firm. This move not only enhances Circle’s regulatory standing but also positions it to better serve its users by integrating traditional financial standards with the innovative capabilities of blockchain technology.