- The USDC and EURC stablecoins from Circle are now the first digital fiat tokens that abide by all of the Markets in Crypto-Assets regulations.
Co-founder and CEO of Circle, Jeremy Allaire, declared on July 1 that his company had been the first in the EU to receive regulatory clearance for issuing stablecoins under the broad Markets in Crypto-Assets (MiCA) regulatory framework.
The new regulations apply immediately to Circle’s USDC USDC tickers down $1.00 and EURC, assuaging investor concerns that they would need to redeem their stablecoins or move their money to other digital assets to be compliant.
Then, Allaire declared that Circle had decided to locate its European headquarters in France, noting the country’s progressive approach to digital asset regulation as well as Circle’s collaboration with the French Prudential Supervision and Resolution Authority (ACPR).
The co-founder of Circle also discussed the historical significance of the legislative reform implemented by the European Union, which established the first all-encompassing framework for digital assets and is evidence of how far the asset class has progressed since its beginnings.
Fears about MiCA and the stablecoin industry
A number of exchanges declared modifications to their stablecoin policy and product offers ahead of the legislative shift in the European Union.
Uphold, a cryptocurrency exchange and custodial platform, notified its European consumers via email in June that it was delisting six stablecoins. These included the following: TrueUSD (TUSD), Gemini dollar (GUSD), Pax dollar (USDP), Frax Protocol (FRAX), Tether USDT tickers down $1.00, Dai DaI tickers down $1.00.
Bitstamp, one of the first exchanges to list the digital fiat currency, followed suit and in the same month delisted Tether’s EURT stablecoin, anticipating the significant changes.
By implementing a sell-only policy for specific stablecoin products in the European market, Binance also adopted a similar but more accommodating stance towards the new stablecoin laws. In order to limit certain market features for European clients, the largest centralized exchange in the world stated that it will not be delisting any stablecoins for its European users at this time. Instead, it will mark the fiat equivalents as either compliant or non-compliant.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
