In a landmark move, Circle has become the inaugural global stablecoin issuer to obtain an Electronic Money Institution (EMI) license. This certification is essential for offering dollar- and euro-pegged crypto tokens within the European Union (EU) under the newly implemented Markets in Crypto Assets (MiCA) regulatory framework.

Market Leadership and Expansion

This licensure positions Circle, whose USDC is second only to Tether’s market-dominating USDT, at the forefront to capture market share among the EU’s 450 million residents. Stablecoins, pivotal in the digital asset ecosystem, are increasingly used for trading on exchanges, transactions, and remittances. Despite USDC’s substantial $32 billion market capitalization, it lags behind Tether’s $110 billion USDT, with the disparity widening.

Read more: Cloudbet Integrates Ethena USDe (sUSDe) Stablecoin and ENA Tokens

Strategic Moves in the EU

With authorization from the French banking regulator, Circle Mint France is set to “onshore” the issuance of its euro-denominated EURC stablecoin to the EU, alongside USDC from the same entity. Preceding MiCA’s stablecoin regulations, effective from June 30, several crypto exchanges had delisted euro-denominated stablecoins like Tether’s EURT.

Regulatory Impetus and Historical Context

MiCA’s exhaustive regulatory stance on stablecoins was galvanized by the potential of large tech enterprises, such as Meta’s Diem (previously Libra), entering financial markets. This prompted a five-year period of dedicated policy formulation within Europe. Dante Disparte, Circle’s head of policy and a former member of the Libra project, highlighted his integral role in the regulatory evolution.

“Personally, I feel a bit of a semi-parental connection to MiCA because, in some respects, it was accelerated by my past endeavors with Libra Diem,” Disparte remarked in an interview. “MiCA not only validates the industry and its enduring nature but also signifies that the era of operating in regulatory gray areas has ended, at least in the world’s third-largest economy. The time for exploiting regulatory havens or working in obscurity while expecting unrestricted access to consumers and markets is over.”