Circle celebrates MiCA stablecoin first as Tether eyes EU exit
The post Circle celebrates MiCA stablecoin first as Tether eyes EU exit appeared on BitcoinEthereumNews.com.
Circle has secured the first stablecoin license under the European Union’s new regulatory regime, while rival Tether continues to avoid discussions about whether its stable will ever join this Euro party. On July 1, Circle announced that it had become the first global stablecoin issuer to achieve compliance with the EU’s Markets in Crypto Assets (MiCA) regulatory framework. MiCA’s full suite of regulations for digital asset service providers won’t take effect until the end of 2024, but certain provisions regarding stablecoin usage took effect on June 30. Circle was issued an Electronic Money Institution (EMI) license from France’s banking regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR). MiCA requires digital asset operators to obtain a license in one European Economic Area (EEA) member state, and Circle chose France as its European base of operations in March 2023. The MiCA stamp of approval allows Circle to issue both USDC and EURC (formerly Euro Coin) across the EEA via its French ‘passport.’ Circle is also opening its Circle Mint option for EU business customers looking to mint and redeem USDC and EURC. Circle CEO Jeremy Allaire said his company’s “adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance.” MiCA classifies stablecoins as either e-money tokens (EMT) or asset-referenced tokens (ART). EMTs are payment-focused assets that maintain a fixed reference to an official fiat currency. ARTs are pegged to either a mix of currencies, real-world commodities such as gold, or other digital assets. ARTs are generally not used for everyday payments, such as coffee or Uber fares, but are considered a ‘means of exchange.’ EMTs can only be issued by holders of EMI permits like the one Circle just received. Circle…
Filed under: News - @ July 4, 2024 12:26 pm