Photo credit: Wachsman/Token2049

Major stablecoin issuer Circle has achieved compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations, the company announced on July 1 following a press conference in Paris.

Now registered as an electronic money institution, Circle is licensed to directly issue its dollar-pegged USDC and euro-pegged stablecoins to European customers under the new regulatory framework.

Equipped with local banking capabilities, Circle Mint France is now operational for European business customers, offering near-instant and cost-effective access to mint and redeem both USDC and EURC, the company said.

Adoption of euro stablecoins

In a separate X post, Circle CEO Jeremy Allaire shared his belief that MiCA’s regulatory clarity will significantly boost the adoption of euro-denominated stablecoins, fostering a “highly competitive market” where both banks and electronic money institutions can leverage this technology.

He anticipates that this will enable the European financial sector to embrace blockchain-based financial infrastructure, thereby “significantly expand[ing] the utility of stablecoins in commerce and finance.”

“Clear and comprehensive regulation will absolutely serve the dual purpose of protecting customers and the market, while also creating a clear set of rules of the road that will foster mainstream adoption.”

MiCA and stablecoins

MiCA, while already implemented on June 30 for stablecoin issuers, will be fully implemented in stages, with further regulations for crypto asset service providers taking effect in December. This landmark legislation, first proposed in 2020 and formally approved in April 2023, aims to harmonize crypto regulations across the EU and establish a clear framework for the burgeoning industry. It signifies Europe’s recognition of crypto’s growing importance in the financial sector, introducing stringent requirements for industry players to ensure consumer protection and market stability.

Before MiCA’s stablecoin rules took effect in June, several exchanges made adjustments to their stablecoin offerings. Uphold delisted six stablecoins for European users, and Bitstamp removed Tether’s EURT from its platform.

Read more: Stablecoins continue to dominate crypto market in Latin America