- Circle has become the first stablecoin issuer to comply with Canada’s new Value-Referenced Crypto Asset requirements
- The compliance enables Circle’s USD Coin (USDC) to be offered on registered crypto asset trading platforms in Canada
- This milestone reflects Circle’s dedication to transparency and regulatory standards, further solidifying its leadership in the digital asset industry
Circle has achieved a milestone by becoming the first stablecoin issuer to meet Canada’s Value-Referenced Crypto Asset (VRCA) requirements. This compliance enables its USD Coin (USDC) to be listed on regulated crypto platforms across Canada. Circle has stolen a march on other issuers as it continues to become the most compliant stablecoin in the ecosystem.
Circle Jumps Through Raised Hoops
Circle’s success in meeting Canada’s VRCA requirements marks a turning point for stablecoins in the country. These rules, introduced by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA), ensure that stablecoins maintain their value through robust reserves. Proof of reserves is an issue that has impacted the expansion of Tether and its USDT stablecoin, which, despite having a far larger market cap than USDC, has struggled to be regulated.
“Achieving compliance with Canada’s VRCA requirements is a testament to our dedication to transparency and trust in the digital asset space,” said Jeremy Allaire, Circle’s Co-Founder and CEO. “We are proud to be the first stablecoin issuer to meet these standards, paving the way for broader adoption of digital currencies in Canada.”
Setting Stablecoin Standards
Circle has been making waves in Europe as well as further afield in 2024; earlier this year, the company became the first stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) framework. By proactively addressing regulatory requirements, Circle is paving the way for stablecoins to integrate into the traditional financial system.
“Our compliance with the VRCA requirements demonstrates our ongoing efforts to work collaboratively with regulators worldwide,” said Dante Disparte, Circle’s Chief Strategy Officer. “This step is vital in promoting the safe and efficient use of digital currencies.”
With USDC now available on Canadian trading platforms, Circle is poised to bridge traditional and digital financial systems. As trust in stablecoins grows, this development signals a new era for digital transactions in Canada and beyond.
