Search
Crypto News
News
Europe’s Initial Licensed Stablecoin Unveiled
Europe has witnessed a significant milestone with the announcement of the first stablecoin to secure a license in accordance with the MiCA regulations. Let’s delve into the specifics.
Author:
Mete Demiralp
01.07.2024 – 20:22
Update:
6 seconds ago
0
Circle, an esteemed global stablecoin provider, has achieved a groundbreaking feat by securing an Electronic Money Institution (EMI) license within the European Union. This coveted license is a key prerequisite for enabling the provision of cryptocurrencies pegged to the US dollar and euro within the European Union, in compliance with the newly-established Markets for Crypto-Assets (MiCA) regulatory framework.
The acquisition of the EMI license positions Circle, known for its prominent USDC stablecoin ranking second to Tether’s USDT, at the forefront of the competition to capture a significant market share within the European Union, encompassing a population of 450 million across 27 nations.
Stablecoins play a pivotal role in the digital asset landscape, facilitating seamless trading on various exchanges and witnessing a surge in adoption for transactions and cross-border remittances. Despite Circle’s impressive $32 billion market capitalization of USDC, it still trails behind Tether’s market-leading USDT, which stands at $110 billion and continues to widen the gap in market dominance.
Related News
US Authorities Make Decisive Move on Seized Bitcoin and Cryptocurrency Assets: Involvement of Coinbase Confirmed
Buoyed by the license granted by the regulatory body in France, Circle Mint France is set to “onshore” the issuance of its Euro-denominated stablecoin EURC within the European Union, alongside the issuance of USDC from the same entity. This strategic move comes in response to the enforcement of MiCA’s stablecoin regulations on June 30, prompting certain cryptocurrency exchanges to delist Euro-denominated stablecoins like Tether’s EURT.
The comprehensive regulatory framework of MiCA reflects a proactive stance towards stablecoins, driven by the anticipation of major tech conglomerates such as Meta venturing into financial markets through the notable Diem (formerly Libra) initiative. Dante Disparte, the policy head at Circle and a key figure in the Libra project, emphasized the extensive five-year policy development efforts in Europe leading up to the implementation of MiCA regulations.
*This content does not constitute investment advice.
For access to a diverse range of over 300 cryptocurrencies, you can sign up on Binance exchange with a 20% COMMISSION DISCOUNT using this referral link!
Stay updated by following our
Telegram
and
Twitter
channels for exclusive news, insightful analysis, and on-chain data!
Receive Notification from Comments Here
Report
Get notified when I receive a new reply
Label
Name:
Mail
Δ
Label
Name:
Mail
Δ
0
Comments
Inline Feedbacks
View all comments