Circle achieves MiCA compliance for stablecoin issuance in EU

Circle has announced its compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This makes Circle the first global stablecoin issuer to achieve this milestone. 

Circle obtained an Electronic Money Institution (EMI) licence from the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the French banking regulator. This licence enables Circle to issue USDC and EURC in the EU under MiCA’s stringent regulatory requirements for stablecoins and e-money tokens. 

2/ Through our French license, $USDC and $EURC issuance is officially live in the EU in compliance with one of the world’s most comprehensive regulatory regimes for digital assets. 🇫🇷🇪🇺https://t.co/V554qOA21i

— Circle (@circle) July 1, 2024

Circle mint launches for European business customers

With compliance secured, Circle Mint is now operational in Europe, offering local banking capabilities that facilitate near-instant and cost-effective minting and redeeming of USDC and EURC. This service aims to streamline access to digital currencies across the European market. 

“Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins, and our adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance,” Jeremy Allaire, Co-Founder and Chief Executive Officer at Circle, said. 

“Achieving MiCA compliance through our French EMI licence is a significant step forward, not just for Circle, but for the entire digital financial ecosystem in Europe and beyond,” Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, added. 

“Circle’s success in obtaining this license is the result of close collaboration over many months between the regulatory teams in charge of ACPR authorizations and the Circle France team,” Coralie Billmann, Managing Director of Circle France, said. 

EU’s MiCA

MiCA mandates that EMT/ART issuers must maintain at least 30 percent of their funds as deposits in credit institutions, typically banks, which do not offer the high-interest rates available from U.S. Treasury bills. However, MiCA imposes stricter regulations on stablecoins deemed ‘significant’ or of ‘systematic importance’ according to various criteria.