USDC and EURC are now compliant with Europe’s MiCA regulations.
Circle is taking a victory lap today after becoming the first company of its kind to receive a European Money Institution (EMI) license.
Starting today, the company’s dollar-denominated USDC and euro-pegged EURC stablecoins are legally compliant with Europe’s landmark crypto regulatory framework, MiCA, a victory that the company’s CEO, Jeremy Allaire, was quick to highlight on X.
“July 1st, 2024, will be remembered as a major moment in the development of this new Internet financial system. It marks the end of the beginning stages of digital assets, and the start of the mainstream growth and adoption phase,” wrote Allaire.
The company has obtained its license through its French subsidiary, making Circle Mint France its main headquarters in the region.
Becoming the first stablecoin issuer to get Europe’s stamp of approval opens the gates for Circle to dominate the sector in the region – potentially boosting demand for its products at a time when it has been steadily losing market share to Tether’s USDT, its main rival.
USDC commands nearly 20% of the stablecoin market, with a $32 billion market cap. However, Tether’s USDT is more than three times larger, constituting 70% of the market with its $112 billion market cap.
Today also marks the first leg of Europe’s crypto regulatory framework, dubbed MiCA (Markets in Crypto-Assets), going live. It contains guidelines for crypto companies, protocols, and users and aims to create a sandbox with best practices for the crypto industry in a region with 450 million potential customers.