Circle's USDC Becomes First MiCA Compliant Stablecoin in the EU

In a landmark move for the global stablecoin industry, Circle, the issuer of USDC and EURC, announced today it has become the first crypto company to achieve compliance with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework.

This achievement comes after Circle secured an Electronic Money Institution (EMI) license from the French Autorité de Contrôle Prudentiel et de Résolution (ACPR).

This licensing allows both USDC and EURC to be issued within the EU in full compliance with MiCA's regulations for stablecoins, effective immediately.

Circle's accomplishment quells concerns that European investors would be forced to redeem their holdings or move them to other digital assets to remain compliant.

"This is a monumental step for Circle as we continue to build robust and trusted financial infrastructure," said Jeremy Allaire, co-founder and CEO of Circle, in a press release. "MiCA compliance demonstrates our commitment to responsible innovation and sets a high bar for the future of digital currencies."

Commenting on the latest development, Circle's Chief Strategy Officer and Head of Global Policy, Dante Disparte wrote: " Years in the making, today's announcement marks a major milestone in how regulated digital currencies will become a permanent pillar in the European and global economy.''

USDC and EURC Now MiCA-Compliant

Circle's EMI license ensures USDC and EURC reserves held by European users are segregated and stored with a Global Systemically Important Bank (GSIB) within the EU.

Importantly, Circle emphasizes that all USDC – both within and outside of Europe – remains fully fungible, and users can continue to trade, transact, and utilize it in DeFi applications without any changes.

For most European users who buy, hold, or sell USDC or EURC through exchanges or other crypto service providers, there will be no disruption.

A First Mover Advantage

By becoming the first MiCA-compliant stablecoin issuer, Circle gains a significant competitive advantage within the European crypto market.

This move positions the company as a leader in regulatory compliance and could attract a wider range of institutional investors seeking exposure to digital assets.

The news comes as MiCA, the EU's landmark crypto regulation, officially went into effect on June 30th, 2024.

MiCA establishes a harmonized regulatory framework for crypto-assets across the EU, aiming to provide clarity and security for investors while fostering innovation within the crypto industry.

Circle's achievement paves the way for other stablecoin issuers seeking to operate within the European market. It remains to be seen how quickly other companies will follow suit and secure MiCA compliance.