Mica and Circle are the first stablecoin issuers to comply with new European regulations

Circle has reached a major milestone by becomingfirst global stablecoin issuer to comply with the Markets in Crypto Assets Regulation (MiCA)As of July 1st, Circle is authorized to issue its USDC AND EURC stablecoins within MiCA regulatory framework, CEO Jeremy Allaire announced at a press conference in Paris.

A step forward in regulatory compliance

The move comes after Circle took over important steps to comply with regulatory compliance regulations in the stablecoin sector. In December last year, Circle obtained a digital asset license in France and appointed a French COO. Circle will now launch MiCA-compliant stablecoins in Europe through its French entity.

USDC: The Major Stablecoin

USDC, the second largest stablecoin pegged to the US dollar, was responsible forAccording to The Block, 20 percent of the total stablecoin supply as of June 28 Data panel. This positioning highlights the importance of regulatory compliance in maintaining investor and user confidence.

MiCA: A Unified Regulatory Framework for Cryptocurrencies

This Markets of Crypto Assets (MiCA) is a comprehensive regulatory framework established by the European Union to unify cryptocurrency regulation across its members. Approved by the European Parliament in April 2023, MiCA is being implemented in stages, with full compliance expected by the end of the year.

Compliance requirements for stablecoins

Part of the MiCA regulatory framework requires the issuance of stablecoins in the region to meet more stringent regulatory requirements. Stablecoin issuers must start complying with certain MiCA requirements from June 30. Stablecoin issuers operating outside the EU but providing services to EU residents will also have to comply with MiCA regulations.

Concerns and Criticisms of MiCA Regulation

However, not everyone is enthusiastic about the new regulations. Some stablecoin issuers have raised concerns about how MiCA relates to their assets. Last month, Tether CEO Paolo Ardoino told The Block that MiCA “contains several problematic requirements.” Ardoino noted that these requirements could make the work of stablecoin issuers extremely complicated and increase operational risks for EU-licensed stablecoins.

Exchange answers

The famous cryptocurrency exchange Binance announced that it will start restricting access to “unauthorized” stablecoins in Europe from June 30. However, Binance I didn’t mention USDTlargest stablecoin by circulation. Binance CEO Richard Teng explained in a post on X (formerly Twitter) that “Binance will not delist any unauthorized stablecoins from the spot market, but will limit their availability to European users for certain products only,” adding that “updates regarding regulated stablecoins will be available soon.”