Jeremy Allaire, CEO and co-founder of Circle, made a groundbreaking announcement on July 1st, revealing that the company had become the first global stablecoin issuer to receive regulatory approval under the European Union’s new Markets in Crypto-Assets (MiCA) regulations.
This meant that Circle’s USDC and EURC stablecoins were now compliant with the EU’s regulations, easing concerns that investors would have to convert their stablecoins to other digital assets to remain compliant.
Allaire also disclosed that Circle had selected France as its European headquarters, citing the country’s progressive approach to digital asset regulation and its partnership with the French Prudential Supervision and Resolution Authority (ACPR).
He emphasized the historical significance of the EU’s regulatory overhaul, which marked the first comprehensive framework for digital assets, underscoring the evolution of the asset class since its inception.
In anticipation of the EU’s regulatory changes, several exchanges adjusted their stablecoin policies and product offerings. Uphold, a crypto exchange and custodial platform, announced in June that it would be delisting six stablecoins for its European users, including Tether (USDT), Dai (DAI), TrueUSD (TUSD), Gemini dollar (GUSD), Pax dollar (USDP), and Frax Protocol (FRAX).
Bitstamp also removed Tether’s EURT stablecoin in the same month, despite being one of the first exchanges to list the digital fiat token. Binance took a more lenient approach, implementing a “sell-only” strategy for certain stablecoin products in the European market, classifying fiat equivalents as either compliant or non-compliant and restricting certain market features for European customers.
Overall, the EU’s MiCA regulations have had a significant impact on the stablecoin market, prompting exchanges to adjust their offerings and strategies in response to the new regulatory framework.