Circle Snags First Stablecoin License Under EU's New MiCA Crypto Rules
What is the significance of Circle's EMI license?
Circle's EMI license is significant because it makes the company the first global stablecoin issuer to achieve compliance with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework. This allows Circle to issue both USDC and EURC stablecoins in the EU, positioning the company to grab market share among the 27-nation trading bloc's 450 million people. The license also demonstrates Circle's commitment to building well-regulated infrastructure for stablecoins.
What is the EURC stablecoin?
EURC is a euro-backed stablecoin issued by Circle, designed for stability and redeemable 1:1 for euros2. It operates under a full-reserve model, with each token backed by euros held in euro-denominated bank accounts2. EURC aims to enhance utility across peer-to-peer transfers and European remittance corridors, and is available on blockchains like Avalanche, Ethereum, Solana, and Stellar3.
What does MiCA stand for?
MiCA stands for Markets in Crypto-Assets. It is a landmark regulatory framework in the European Union that aims to create an all-encompassing legal framework for the regulation of crypto assets5. MiCA is designed to deliver transparency, uniformity, and security in the realm of digital assets.