Circle, the company behind USD Coin (USDC), has secured an EU stablecoin license following compliance with MiCA regulations. The EU stablecoin license makes USDC a regulated stablecoin as the Markets in Crypto Assets (MiCA) regulation becomes effective. Circle, also behind EURC stablecoin, hailed the MiCA compliance as the first of any issuer. 

Circle secures EU stablecoin license

Circle compliance with the MiCA was on course since the USDC issuer secured the Electronic Money Institution (EMI) license to operate in France. The EMI license granted by the country’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) mandated MiCA compliance. 

Circle chief executive Jeremy Allaire revealed in the press release the devotion of USDC issuers towards establishing a durable and compliant infrastructure for stablecoins. 

Allaire noted that adherence to MiCA is a critical, comprehensive crypto regulatory milestone. The compliance affirms Circle’s devotion to MiCA’s objective of onboarding crypto into mainstream acceptance. 

MiCA was enacted in mid-2023 to offer a robust regulatory platform for EU crypto assets. Although it implements stricter rules, It offers clear guidelines for crypto firms. 

MiCA compliance allows Circle to issue EURC and USDC in the EU 

The MiCA compliance will enable Circle to issue euro-pegged EURC and dollar-pegged USDC within the EU market. The Allaire-led company confirmed the unveiling of Circle Mint to allow business clients in the region to mint and redeem the stablecoins. 

Circle’s global policy executive, Dante Disparte, indicated that realizing MiCA compliance via the French EMI license is a critical achievement. This milestone is vital for both Circle and the entire decentralized financial ecosystem.

MiCA compliance is an essential catalyst to scaling USDC to bridge the gap with the market leader Tether’s USDT.  USDC has a $32.4 billion market capitalization, trailing USDT’s $112.6 billion. Besides market cap, USDT  realized six times the trading volume of USDC in the past 24 hours, as per CoinGecko. 

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