- Circle has obtained the first EMI license to offer dollar- and euro-pegged crypto tokens in the EU under MiCA
- The license has positioned Circle to capture a significant share of the EU’s market
- Stablecoin issuers have faced a deadline to obtain authorization to operate within the EU or face stringent limits
Circle has become the first global stablecoin issuer to obtain an Electronic Money Institution (EMI) license, a crucial requirement for offering dollar- and euro-pegged crypto tokens in the European Union (EU) under the Markets in Crypto Assets (MiCA) regulatory framework. This license places Circle, whose USDC is currently the second-largest stablecoin behind Tether’s USDT, in a prime position to capture a significant share of the EU’s market. Yesterday was the deadline for stablecoin issuers to obtain proper authorization to operate within the EU or face stringent limits on transaction numbers and values.
Circle is First Out of the Gate
Circle’s USDC, which has a $32 billion market cap, is a prominent player in the stablecoin market. Although it still trails behind Tether’s USDT, which boasts a market value of $110 billion, it is the most heavily regulated stablecoin on the market and therefore has an advantage in what is rapidly becoming the new regulatory crypto paradigm.
Circle CEO Jeremy Allaire announced the news in a press conference yesterday, with Circle posting about the development on X:
1/ 🚨 As the first global stablecoin issuer to achieve MiCA compliance, we are committed to building a more inclusive, compliant future for internet finance.
— Circle (@circle) July 1, 2024
The company also released a blog post to exlain the significance of the development, saying that the stabelcoin is now “officially available for business customers in Europe.”
MiCA Bringing Changes
With the new EMI license from the French banking regulatory authority, Circle Mint France will “onshore” the issuance of its euro-denominated EURC stablecoin to the EU and will also issue USDC from the same entity. This move comes in the wake of MiCA’s stablecoin rules, which took effect on June 30, leading some crypto exchanges to delist euro-denominated stablecoins, such as Tether’s EURT.
Allaire said in the press conference that Circle’s plan had always been to “build durable, compliant, and well-regulated infrastructure for stablecoins,” calling MiCA a “huge milestone in bringing digital currency into mainstream scale and acceptance.”
Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, added that “Achieving MiCA compliance through our French EMI license is a significant step forward, not just for Circle, but for the entire digital financial ecosystem in Europe and beyond.”
