Circle Becomes the First Stablecoin Issuer to Obtain Europe\'s Regulatory Approval

Starting today, the company’s dollar-denominated USDC and euro-pegged EURC stablecoins are legally compliant with Europe’s landmark crypto regulatory framework, MiCA

Stablecoin issuer Circle has become the first company of its kind to receive a European Money Institution (EMI) license.

The license, which went into effect on Saturday, allows Circle’s dollar-pegged USDC and euro-stablecoin EURC to become legally compliant with Europe’s landmark crypto regulatory framework, known as MiCA.

“July 1st, 2024, will be remembered as a major moment in the development of this new Internet financial system. It marks the end of the beginning stages of digital assets and the start of the mainstream growth and adoption phase,” Circle CEO Jeremy Allaire wrote on X.

The license was obtained through Circle’s French subsidiary, which will serve as the company’s main headquarters in the region.

Being the first stablecoin issuer to get Europe’s stamp of approval opens the gates for Circle to dominate the sector in the region – potentially boosting demand for its products at a time when it has been steadily losing market share to its main rival, Tether’s USDT.

Of the total stablecoin market, USDC commands nearly 20% with a $32 billion market cap. However, Tether’s USDT is more than three times larger, boasting a $112 billion market cap, which constitutes 70% of the market.

Today also marks the first leg of Europe’s crypto regulatory framework, dubbed MiCA (Markets in Crypto-Assets), going live. It contains guidelines for crypto companies, protocols, and users and aims to create a sandbox with best practices for the crypto industry in a region with 450 million potential customers.

The above is the detailed content of Circle Becomes the First Stablecoin Issuer to Obtain Europe\'s Regulatory Approval. For more information, please follow other related articles on the PHP Chinese website!