Crypto Platform Circle Hits Milestone After Meeting MiCA Regulations
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Cryptocurrency platform Circle has become France’s first stablecoin issuer registered as an electronic money institution (EMI). Circle is now fully licensed following this registration and meeting the European Union’s crypto regulations.
Circle is the issuer of the popular USDC (USD Coin) stablecoin. This means the platform has become the first to meet the regulatory standards or requirements for the European Union crypto asset regulatory framework.
Circle Can Now Issue USDC Tokens in Europe
Circle now has the license to issue Euro Coin and USDC tokens, which adheres to MiCA’s stablecoin regulations. The firm has also rolled out the Circle Mint in France, which allows entities to mint their Circle tokens.
Stablecoins are usually pegged to the traditional assets they represent, such as the U.S. dollar. Investors use them to wedge against the volatility of regular cryptocurrencies like Bitcoin and Ethereum. They are also used to trade in and out of crypto assets quickly without depending on already stored fiat currencies in the bank.
Regulatory bodies have sought the best framework for stablecoins since they are not fiat currencies or cryptocurrencies. The new rule has set the stage for stablecoin issuers to follow proper guidelines when dealing with these types of tokens.
The EU recently passed a new law that governs crypto firms’ operations. The law, called MiCA, set out rules for platform security and investor protections in the crypto sector. Fraud in the crypto industry has increased despite concerted efforts to curb the situation. With the new law, crypto firms will stay within the rules when dealing with clients and carrying out transactions.
Circle Wants To Enhance Crypto Adoption In The Mainstream
Stablecoin provisions in the law were only approved last week, even though the MiCA law officially took effect in May last year. The new law explains that firms are prohibited from issuing non-euro-denominated stablecoins if they exceed 200 million euros or 1 million daily transactions.
Circle now has the license to add several features to its services as a France-registered EMI. These services include using Circle Mint to mint and redeem tokens. The license also gives crypto firms the license to provide services in any EU country while extending the services to other countries within the region.
Chief Executive Officer of Circle, Jeremy Allaire, commented on the development. He stated that the recent license is a major achievement in the company’s goal of providing top crypto services. He added that Circle wants to continue in its quest to bring digital currencies to the mainstream, which is gaining widespread acceptance.
