Circle Obtains EMI License for Stablecoin Issuance in EU

Stablecoin issuer Circle has successfully obtained an Electronic Money Institution (EMI) license, a crucial step in offering dollar- and euro-pegged crypto tokens within the European Union (EU) under the regulatory framework known as Markets in Crypto-Assets (MiCA).

Circle, known for its USDC stablecoin which competes with Tether’s USDT, proudly announces that it is the first global stablecoin issuer to comply with MiCA regulations. Prior to the rules coming into effect on June 30, several crypto exchanges had to remove euro-denominated stablecoins like Tether’s EURT from their platforms.

With the EMI license granted by the French banking regulatory authority, Circle Mint France will facilitate the issuance of its euro-denominated EURC stablecoin within the EU. Additionally, the company will also issue USDC for customers in the 27-nation trading bloc through the same entity.

The development of MiCA’s stringent regulations concerning stablecoins stemmed from concerns over major tech companies, such as Meta’s Diem (previously known as Libra), venturing into financial markets. This led to a five-year effort to establish comprehensive policies in Europe. Dante Disparte, Circle’s head of policy and a former member of the Libra project, emphasized the significance of MiCA in the industry’s evolution.

“Personally, I feel a somewhat parental connection to MiCA as it was partly influenced by my previous involvement in the Libra Diem project,” Disparte stated. “MiCA validates the industry’s legitimacy and permanence, but it also signals the end of operating in regulatory gray areas. Companies can no longer expect to freely access consumers and markets while skirting regulations, especially in one of the world’s largest economies.”