News
04
Jul
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Circle’s stablecoins received EU approval

Circle received EU approval for USDC and EURC stablecoins this week. USDC is the first global stablecoin to comply with the new EU regulation. The overall situation of the EU’s stablecoin regulation is still unclear.

US technology company Circle has received EU approval for its USDC and EURC stablecoins. USD Coin is the first global dollar-based stable currency that is compliant with the new EU regulation. The news was officially announced on Monday of this week.

Patrick Hansen, the head of EU strategy at Circle, made the following post on X on the big day.

A new crypto regulation framework, MiCa, is being introduced in the EU. The package will come into force at the turn of the year, but the rules regarding stable currencies were already introduced on the last day of June.

USD Coin’s approval was excellent news for crypto investors in the EU region. It removed much of the uncertainty from the market that has been in the air for the past few weeks. Before this, there was a risk that none of the significant dollar-based stablecoins would comply with EU regulations.

Circle CEO Jeremy Allaire commented on the achievement as follows in the official press release:

Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins, and our 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.

Circle’s stablecoins have received an EMI (Electronic Money Institution) license from the French banking regulator ACPR. With that, USDC and EURC stablecoins meet the requirements of the MiCa regulation in the European Economic Area (EEA). Circle France, a company operating in France, takes care of guarantees for stable currencies.

USDC and EURC are not the first stablecoins to comply with EU regulations, as the Finnish EUROe achieved this status over a year ago. Surprisingly, EUROe has not managed to gain broader support in the market. EUROe is also not listed on Finnish crypto exchanges, which is somewhat surprising.

The regulatory status of stablecoins is still unclear

The “stamp of approval” received by Circle was great news for the stablecoin market in Europe. Despite this, the overall situation is still somewhat unclear. As a crypto exchange customer, the biggest disappointment has been poor communication. Most of the biggest crypto exchanges have not informed us about the matter or made any changes to their offerings.

Binance is the only player in the industry that has communicated fast and in all channels where customers can be reached.

Crypto exchanges are waiting for a statement from the EU, and before that, everyone interprets the situation independently. Tether (USDT) will not likely comply with EU regulations, but it can still be traded on almost all exchanges without problems.

For EU investors: If you hold stablecoins other than USDC, follow the announcements of the exchanges you use. There might be restrictions on trading or transferring other stablecoins.

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