On July 1, Jeremy Allaire, co-founder and CEO of Circle, announced that the company is now the first global stablecoin issuer to receive regulatory approval under the European Union’s Markets in Crypto-Assets (MiCA) framework.
USDC and EURC Now Compliant
Circle’s stablecoins, USDC and EURC, are now compliant with the new EU regulations. This means investors can continue using these stablecoins without the need to redeem them or switch to other digital assets.
Circle Chooses France for European HQ
Allaire also announced that Circle has selected France as its European headquarters. He praised France’s progressive approach to digital asset regulation and highlighted Circle’s positive relationship with the French Prudential Supervision and Resolution Authority (ACPR).
Reflecting on the broader impact, Allaire noted the historical importance of the EU’s regulatory overhaul, the first comprehensive framework for digital assets. He emphasized the progress since the early days of crypto, when fiat digital currencies were scarcely known.
Changes in Stablecoin Policies
In response to the new regulations, several crypto exchanges have adjusted their stablecoin policies.
In June, Uphold, a crypto exchange and custodial platform, announced the delisting of six stablecoins for its European users. These include Tether (USDT), Dai, TrueUSD (TUSD), Gemini Dollar (GUSD), Pax Dollar (USDP), and Frax Protocol (FRAX).
Bitstamp also delisted Tether’s EURT stablecoin later in June, anticipating the regulatory changes. Bitstamp was one of the first exchanges to list this digital fiat token.
Binance adopted a “sell-only” approach for certain stablecoin products in the European market. Rather than delisting, Binance will label fiat equivalents as compliant or non-compliant and limit some market features for European customers.
