Circle’s CEO, Jeremy Allaire, announces that the company’s digital assets pegged to the US dollar and the euro are now fully compliant with European Union regulations. According to Allaire, Circle is the first global issuer of stablecoins to achieve compliance with the Markets in Crypto Assets (MiCA) framework, a comprehensive set of rules governing the cryptocurrency industry within the EU.
MiCA places stablecoin issuers under the oversight of the European Banking Authority and mandates the maintenance of adequate liquid reserves. Allaire emphasizes that Circle has begun native issuance of both USDC and EURC to its European clientele as of July 1st. This development marks a significant milestone in the evolution of the internet financial system, establishing stablecoins as legal tender and advancing cryptocurrency’s role as a mainstream infrastructure for payments, finance, and commerce on a global scale.
Moreover, Circle has obtained authorization as an electronic money issuer from the French financial regulator, Autorité de Contrôle Prudentiel et de Résolution (ACPR). Consequently, Circle’s operations in France now serve as the hub for its regulated financial activities in Europe, enabling direct access to USDC and EURC through Circle Mint France.
All USDC and EURC circulating in Europe are confirmed to be MiCA compliant, with Circle maintaining 100% of EURC reserves under its regulated entity, Circle France. Similarly, the necessary reserves for USDC held by European users within the EU are safeguarded with a Global Systemically Important Bank (GSIB).
The announcement underscores Circle’s commitment to regulatory compliance and its strategic positioning within the evolving cryptocurrency landscape, ensuring transparency and security for its users and stakeholders alike.
