Circle Achieves Key Milestone with French EMI Registration, Complying with EU Crypto Laws
Cryptocurrency firm Circle announced on Monday that it has successfully registered as an electronic money institution (EMI) in France. This registration grants Circle a significant license, allowing the firm to operate as a compliant stablecoin issuer under the European Union's stringent cryptocurrency regulations.
Circle, renowned for its USD Coin (USDC) stablecoin, received the e-money license from France’s banking regulator, the Autorite de Controle Prudentiel et de Resolution (ACPR). This makes Circle the first global stablecoin issuer to comply with the EU’s Markets in Crypto-Assets (MiCA) regulatory framework.
With this approval, Circle can now issue both its USDC and Euro Coin (EURC) tokens in the EU, adhering to MiCA’s stablecoin regulatory requirements. Additionally, Circle is launching its Circle Mint service in France, enabling businesses to mint and redeem Circle stablecoins.
“Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins,” said Jeremy Allaire, Circle's co-founder and CEO. “Our adherence to MiCA, one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance.”
Stablecoins, pegged to traditional assets like government-issued currencies, offer investors a way to avoid the volatility of other cryptocurrencies such as Bitcoin. They also facilitate quick trading in and out of cryptocurrencies without relying on fiat currencies stored in bank accounts.
The EU passed the world’s first comprehensive cryptocurrency regulation law last year, outlining rules for investor protections and platform security. MiCA, which officially took effect in May 2023, included stringent provisions for stablecoins, particularly those denominated in U.S. dollars. Under these rules, companies must halt the issuance of non-euro-denominated stablecoins used as a "means of exchange" if they exceed 1 million transactions or 200 million euros ($215.2 million) in daily value.
As a France-registered EMI, Circle can now offer its services, including minting and redeeming USDC via Circle Mint, across the entire EU. MiCA allows crypto businesses to operate in one EU country and extend their services to other member states.
The remaining MiCA obligations, covering crypto asset service providers, will come into effect by December 30, 2024, with full compliance required by July 2026.
USDC, launched in September 2018 by Circle and crypto exchange Coinbase, is the second-largest stablecoin globally, with $32.4 billion in circulation. It follows Tether's USDT, which leads with $112.7 billion in circulation.