On Monday, the second largest stablecoin issuer, Circle, was approved to operate as an electronic money transmitter (EMI) in France. The Circle team was pleased to state that the approval of EMI allowed the stablecoin issuer to offer its diverse crypto product to the European states.
The approval of Circle EMI comes at time when the market for crypto assets (MiCA) regulations takes effect.
France Regulators Approves Circle EMI
In a July 1 blog post, the Circle team confirmed that Autorite de Controle Prudentiel et de Résolution( ACPR) had greenlighted its EMI license. The EMI license allows Circle to operate as a regulated company under the MiCA rule.
Circle boasts of being the first stablecoin issuer to meet the MiCA requirements successfully. The Circle team stated that the approval of EMI allows the stablecoin issuer to offer USDC Euro Coin to European users in compliance with the new law. Having secured the EMI permit, the stablecoin issuer plans to provide its Circle Mint in France.
An announcement conveyed by the chief executive of Circle, Jeremy Allaire, was pleased to announce the approval of EMI. The CEO reflected on Circle’s exciting journey and noted that the stablecoin issuer has focused on improving compliance by investing in well-regulated infrastructures.
The executive recognized Circle’s endeavor to uphold compliance, which made it easy to comply with the MiCA rule, which took effect on July 1, 2024. The MiCA rule was approved by the European regulators last year.
These rules clearly define crypto assets, the conditions for issuing, and how the virtual asset service providers should operate. The MiCA rule advised VASPs on the need to strengthen user protection.
Circle Complies With MiCA Rules
Also, the MiCA urged the crypto firms to implement adequate security measures to prevent unfair business practices and security concerns. The vast nature of crypto obliged the European regulator to introduce new provisions on stablecoins.
A review of the MiCA rules governing stablecoin issuance is considered stringent. The stablecoin rule determines how much an individual should invest in dollar-backed crypto assets.
Also, the new legislation, the MiCA, states the condition for issuing non-Euro-denominated stablecoins. The MiCA rules will require the crypto asset service providers to comply with specific provisions by December 30, 2024.
MiCA Rules Take Effect
The following compliance phase will require crypto firms to fully comply with MiCA by July 2026. Allaire stated that enacting MiCA rules will redefine the digital sector, promoting the mainstream adoption of cryptocurrency.
The executive confessed that Circle applied for the EMI in April last year. The approval allows the Circle to offer its stablecoin in European member states since MiCA allows companies registered in one location to operate within the Eurozone.
Having gained a considerable market share, Circle will offer crypto assets backed by fiat currency to European users amid the uncertainty in the market. Recent data shows that Circle USDC’s market capitalization reached $33 billion.
Editorial credit: Muhammad Alimaki / Shutterstock.com
