Circle Secures First E-Money License Under EU’s MiCA Regulations
Circle has obtained an e-money license from France's ACPR, enabling it to issue USDC and Euro Coin across the EU under the new MiCA regulations, marking a significant advancement in crypto compliance.
Circle, a leading player in the cryptocurrency space, achieved a groundbreaking milestone on July 1 by becoming the first global stablecoin issuer to secure regulatory approval under the European Union’s comprehensive Markets in Crypto-Assets (MiCA) framework. This approval, granted by France’s financial watchdog, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), allows Circle to issue its stablecoins — USDC and Euro Coin (EURC) — across the EU, reflecting a significant leap in crypto compliance and market access.
The firm’s co-founder and CEO, Jeremy Allaire, expressed that obtaining the e-money license is a “monumental step” for Circle, enhancing its infrastructure for digital currencies and integrating them into mainstream financial systems. This development comes at a time when the stability offered by stablecoins is critically acclaimed, especially as these digital assets are pegged to fiat currencies like the US dollar and the euro, providing a safe haven from the typical volatility seen in other cryptocurrencies like Bitcoin.
Circle’s new status as a France-registered electronic money institution capitalizes on MiCA’s “passporting” feature, which simplifies the process for crypto firms registered in one EU country to operate across other member states without additional licenses. This is particularly advantageous for Circle, which has established itself significantly since 2018, with USDC now being the second-largest stablecoin globally.
The MiCA framework, a pioneering regulatory approach in the EU, includes robust provisions to protect investors and prevent market manipulation. It represents the first extensive legal framework governing crypto operations within the EU. Companies engaged in crypto services have until July 2026 to ensure full compliance with these rules, aiming to foster a safer and more robust digital asset market.
Circle’s choice of France as its European headquarters underscores the country’s proactive stance on digital asset regulation and reflects a strategic move to leverage the French regulatory environment to enhance its service offerings across Europe. As the landscape of digital currencies continues to evolve, Circle’s compliance with MiCA could serve as a template for other crypto firms aiming to expand their operations within the EU under a regulated framework.
