Circle has obtained an Electronic Money Institution (EMI) license to issue the euro-denominated EURC stablecoin in the EU, complying with the new Markets in Crypto Assets (MiCA) regulatory framework. The move positions Circle to expand its market reach in Europe and potentially fill gaps left by delisted stablecoins.
Circle has become the first global stablecoin issuer to comply with the EU’s new Markets in Crypto Assets (MiCA) regulatory framework. The company secured an Electronic Money Institution (EMI) license before the MiCA rules took effect on June 30, 2024. This move allows Circle Mint France to issue the euro-denominated EURC stablecoin alongside its USDC within the EU.
MiCA was introduced to regulate stablecoins in response to concerns over large tech companies like Meta possibly entering financial markets. The regulations, prompted by developments such as Meta’s Diem project, mark the end of lenient operations in regulatory havens for stablecoin issuers. Circle plans to leverage this regulatory approval to expand its market reach among the EU’s 450 million residents.
Prior to MiCA’s implementation, some crypto exchanges had delisted euro-denominated stablecoins, including Tether’s EURT. Circle’s latest compliance achievement positions it to potentially bridge existing gaps in the stablecoin market in Europe.
