Circle has been granted a license to issue USDC and EURC under Europe’s MiCA framework, making it the first global stablecoin issuer to do so. The Electronic Money Institution (EMI) license was awarded by the French banking regulatory authority, allowing Circle to expand its market in Europe. CEO Jeremy Allaire announced the company’s readiness to launch MiCA-compliant stablecoins, emphasizing the importance of this achievement in advancing the Internet financial system and the necessity of global regulatory frameworks.
The MiCA framework, approved by the European Parliament in April 2023, aims to standardize crypto regulation across the EU, addressing concerns about financial stability and consumer protection prompted by initiatives like Meta’s Diem. Circle’s head of policy, Dante Disparte, highlighted MiCA’s role in legitimizing the crypto industry and eliminating regulatory havens. The phased implementation of MiCA, which started on June 30, includes specific requirements for stablecoin issuers to ensure a structured transition toward full compliance by the end of the year.
With the availability of USDC and EURC under MiCA’s regime, Circle’s CEO anticipates a significant impact on the digital asset market, positioning USDC as a leading dollar stablecoin in the EU. This development also sets a precedent for other major jurisdictions to adopt similar regulations. Despite this positive outlook, some industry players have expressed concerns about MiCA’s complexity and potential risks, which has led to adjustments in operations for some stablecoin issuers.
The clear regulatory framework for Euro stablecoins promotes a competitive market, enabling their integration into various products and services offered by banks and EMIs. This expansion of utility in commerce and finance has attracted substantial interest from enterprises, financial institutions, and payment firms. Circle’s achievement marks a significant milestone for the stablecoin industry, indicating a new era of regulation and stability.