On the first day of July, Jeremy Allaire, the visionary co-founder and CEO of Circle, made a groundbreaking announcement: Circle has emerged as the pioneering global stablecoin issuer to secure regulatory endorsement under the European Union’s comprehensive Markets in Crypto-Assets (MiCA) regulatory framework.
Circle’s USDC and EURC have been declared fully compliant with the new regulations, effective immediately. This development has alleviated concerns that investors might be compelled to redeem their stablecoins or shift their holdings to alternative digital assets to remain within regulatory compliance.
Allaire further revealed Circle’s strategic decision to establish its European hub in France. He highlighted France’s progressive approach to digital asset regulation and the established collaboration between Circle and the French Prudential Supervision and Resolution Authority (ACPR).
Reflecting on the EU’s regulatory milestone, the Circle co-founder emphasized its historical importance: the MiCA represents the first all-encompassing regulatory framework for digital assets, marking a significant evolution from the asset class’s early days.
In anticipation of the EU’s regulatory transition, various exchanges have revised their stablecoin policies and offerings. A visual representation of the MiCA regulatory framework’s rollout timeline was provided by the European Securities and Markets Authority.
Crypto exchange and custodial service Uphold, in June, informed its European clientele via email of its decision to remove six stablecoins from its platform. The list includes Tether (USDT), Dai (DAI), TrueUSD (TUSD), Gemini dollar (GUSD), Pax dollar (USDP), and Frax Protocol (FRAX).
Bitstamp echoed this move by removing Tether’s EURT stablecoin from its listings later in the same month, despite being an early adopter of the digital fiat token. This was in direct response to the impending regulatory updates.
Binance adopted a more nuanced stance towards the new stablecoin regulations, implementing a “sell-only” policy for certain stablecoin products in the European market. The leading centralized exchange clarified that it would not be delisting any stablecoins for its European users at this juncture. Instead, it has categorized fiat equivalents as either compliant or non-compliant, while also restricting specific market functionalities for its European clientele.
For insights into the global landscape of crypto taxation and helpful tips, refer to the latest issue of the magazine featuring an analysis of the best and worst countries for crypto taxes.