Circle Becomes First Stablecoin Issuer to Obtain EMI License Under MiCA Rules
Circle, the stablecoin issuer, has obtained the first electronic money institution (EMI) license under the new EU regulatory framework, the Markets in Crypto Assets (MiCA).
This license allows Circle to issue crypto tokens backed by the euro and the dollar in the European Union.
A Significant Milestone for Circle
Circle is the world’s first stablecoin issuer to comply with the new MiCA rules. Prior to the enforcement of these rules on June 30th, some crypto exchange platforms had withdrawn euro-denominated stablecoins, such as Tether’s EURT. Obtaining this license positions Circle well to capture a market share among the 450 million individuals in the 27 EU countries.
With a market capitalization of $32 billion, Circle’s USDC is the second-largest stablecoin, far behind Tether’s USDT, which dominates the market with $110 billion. With the new license issued by the French banking regulator, Circle Mint France will be able to issue its euro-denominated stablecoin, EURC, in the EU and issue USDC from the same entity.
Impact of MiCA Rules on the Industry
The MiCA regulatory framework was accelerated by Meta’s (formerly Facebook) Libra initiative, renamed Diem. Dante Disparte, Head of Policy at Circle, who was involved in the Libra project, explained that the MiCA rules validate the cryptocurrency industry and its permanence.
MiCA is both a validation of the industry and its permanence, but it is also clear that there are no shortcuts anymore, at least not in the world’s third-largest economy. Gone are the days when one could operate in a regulatory haven or in the shadows and expect unfettered and liberal access to consumers and market participants.
