Circle’s USDC and EURC stablecoins are now fully compliant digital fiat tokens under the EU’s Markets in Crypto-Assets (MiCA) regulations, marking them as the first to achieve this status.
Source: European Securities and Markets Authority
On July 1, Jeremy Allaire, co-founder and CEO of Circle, announced that Circle is the first stablecoin issuer to receive regulatory approval under MiCA. This compliance means that investors will not need to redeem their stablecoins or transfer their funds to other digital assets to remain compliant.
Circle has selected France as its European headquarters, highlighting France’s progressive approach to digital asset regulation and Circle’s cooperation with the French Prudential Supervision and Resolution Authority (ACPR).
Allaire also emphasized the historical significance of the MiCA regulatory framework, noting its role as the first comprehensive regulatory system for digital assets. He reflected on the evolution of fiat digital currency and the now-established legal framework that incorporates stablecoins into the financial system.
In response to the new MiCA regulations, several exchanges have adjusted their stablecoin policies. Uphold, for instance, announced the delisting of six stablecoins, including Tether (USDT), Dai (DAI), TrueUSD (TUSD), Gemini dollar (GUSD), Pax dollar (USDP), and Frax Protocol (FRAX) for its European users. Bitstamp also delisted Tether’s EURT stablecoin in anticipation of the regulatory changes.
Binance, the largest centralized exchange, opted for a “sell-only” strategy for certain stablecoin products in the European market. Instead of delisting, Binance labeled fiat equivalents as compliant or non-compliant and restricted certain market features for European customers.
