Circle Achieves Regulatory Approval as First Stablecoin Issuer Under EU's MiCA Scheme
Summary:
Circle, a fintech firm under the leadership of Jeremy Allaire, is the first stablecoin issuer to receive EU regulatory approval under the new MiCA scheme. The company's USDC and EURC are compliant with the updated regulations, reducing concerns about potential stablecoin redemptions. The firm has chosen France as its European hub, and many exchanges have revised their stablecoin policies in preparation for the MiCA laws, with some delisting certain coins or adopting a "sell-only" strategy.
Jeremy Allaire, co-founder and CEO of fintech firm Circle, revealed on July 1 that the company is the pioneer stablecoin issuer to receive regulatory approval in the European Union under the comprehensive Markets in Crypto-Assets (MiCA) regulatory scheme. With immediate effect, Circle's USDC (USDC) and EURC adhere to the new regulations, thus allaying concerns that investors may need to refund their stablecoins or switch their funds to other crypto-assets to remain in compliance. Allaire further stated that Circle has chosen France as its European base, attributing this decision to France's progressive regulation of digital assets and Circle's ongoing collaboration with the French Prudential Supervision and Resolution Authority (ACPR). Reflecting on the EU's regulatory transformation, Circle's co-founder disclosed its historic relevance as the debut encompassing regulation framework for digital assets, indicating the remarkable journey of this asset class since its inception.
Reacting to the introduction of MiCA, several exchanges reported alterations to their stablecoin rules and product lines. In June, Uphold, a crypto exchange and custodial platform, told its European stakeholders that it would be delisting six stablecoins. Affected coins included Tether (USDT), Dai (DAI), TrueUSD (TUSD), Gemini dollar (GUSD), Pax dollar (USDP), and Frax Protocol (FRAX). In the same month, Bitstamp also delisted Tether's EURT stablecoin, foreseeing the sweeping regulation changes, despite being one of its earliest exchanges to list this digital fiat token. Similarly, Binance adopted a "sell-only" approach for some stablecoin products in the European market. The world's biggest centralized exchange assured its European users that it wouldn't delist any stablecoins for the time being; rather, it would categorize the fiat counterparts as either compliant or non-compliant, and restrict certain market functions.
Published At
7/1/2024 7:52:09 PM
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