July 1Jeremy Allaire, co-founder and CEO of Circle, announced that the company has become the first stablecoin issuer in the European Union to receive regulatory approval under the EU’s Markets in Cryptoassets (MiCA) regulatory framework. USDC and EURC Circle’s stablecoin complies with the new regulation, helping to quell concerns that investors would have to exchange stablecoins or move to other digital assets.
Circle chose France as its European headquarters due to its forward-looking stance on digital asset regulation and its partnership with the French Prudential Regulation Authority (ACPR). Allaire highlighted the historic significance of the EU’s first comprehensive regulatory framework for digital assets, which reflects the significant growth of the asset class.
MiCA’s Fears and the Stablecoin Market
In preparation for the European Union’s regulatory changes, several exchanges have announced changes to their policies and products regarding stablecoins. In June, Uphold announced that it would delisting six stablecoins including Tether (USDT), Go Go (GO), TrueUSD (TUSD), Gemini Dollar (GUSD), Pax Dollar (USDP), and Frax Protocol (FRAX) for European usersBitstamp also delisted Tether’s EURT coin later that month.
Binance is taking a softer approach to the new regulations with a “sell only” strategy for certain stablecoins in Europe, not delisting any stablecoins but labeling their fiat equivalents as compliant or non-compliant and restricting certain market features to European customers.
Read more: Company Behind USDC Moves Legal Base to US Ahead of IPO
