Circle’s CEO, Jeremy Allaire, has announced that the company’s digital assets, which are pegged to the US dollar and the euro, are now in compliance with the laws of the European Union. According to Allaire, Circle is the first global stablecoin issuer to achieve compliance with the Markets in Crypto Assets (MiCA) regulations, which provide a regulatory framework for the cryptocurrency industry in the EU. These regulations place stablecoin issuers under the jurisdiction of the European Banking Authority and require them to hold sufficient liquid reserves.
As of July 1st, Circle is now issuing both USDC and EURC to European customers. Allaire sees this as a significant milestone in the development of the internet financial system, as it establishes clear regulations that make stablecoins legal electronic money. He believes that this will pave the way for the crypto market to become a mainstream infrastructure for payments, finance, and commerce.
In addition, Circle has received authorization as an electronic money issuer from the French financial regulator, Autorité de Contrôle Prudentiel et de Résolution (ACPR). The headquarters of Circle’s European regulated financial activity is now based in France, and European customers can directly access USDC and EURC through Circle Mint France.
All USDC and EURC currently in circulation in Europe are officially MiCA compliant. Circle holds 100% of EURC reserves under its regulated Circle France entity, and it also holds the necessary reserves for European USDC holders within the EU through a Global Systemically Important Bank (GSIB).
It is important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at one’s own risk, and any losses incurred are the responsibility of the individual. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor.
