Circle Pioneers MiCA Compliance, Co-founder and CEO Jeremy Allaire Shills USDC and EURC Stablecoins

Circle secured an Electronic Money Institution (EMI) license on Monday. This is a requirement for any issuer looking to offer dollar- and euro-pegged crypto

Stablecoin issuer Circle has announced that both USDC and EURC are now available under new EU stablecoin laws.

In a statement on Saturday, Circle said that it is the first global stablecoin issuer to be fully compliant with the Markets in Crypto Assets (MiCA) framework, which came into effect on July 1.

The firm added that it is now natively issuing both USDC and EURC to European customers.

“Together with the recent launch of EURC, this announcement marks a significant milestone in our efforts to fully localize both our dollar and Euro stablecoins within the European regulatory framework,” the announcement reads.

The development comes after crypto exchanges moved to delist Euro-denominated stablecoins in a bid to achieve MiCA compliance.

Among them, Bitstamp revealed that the Euro Tether (EURT) stablecoin was delisted, joining the likes of Binance, Kraken, OKX, and Uphold, which also shed EURT.

Meanwhile, Tether, the issuer of USDT stablecoin, indicated that it does not currently aim to comply with MiCA, which explains why it is subject to restrictions or cancellation on exchanges.

Tether CEO Paolo Ardoino is against MiCA’s expectation of 60% of backing in bank cash, citing “bank failure risk.”

“Stablecoins should be able to keep 100% of reserves in treasury bills, rather than exposing themselves to bank failures by keeping big chunks of reserves in uninsured cash deposits. In case of bank failure, securities return to the legitimate owner,” Ardoino wrote in April.

For Tether, this could be another brick in the regulatory wall, shoving it to the sidelines over time as regulation in stablecoins gathers pace around the world.

However, the landmark development sets the stage for increased adoption of Euro digital currency in the form of Euro stablecoins. With a clear set of guidelines for Euro digital currency issuance and operations, the new framework will promote a highly competitive market.

Allaire Agrees on More Competition, Binance Welcomes Development

Reacting to the news, Binance CEO Richard Teng lauded Circle in a post, calling for more players in the space.

“USDC becoming a MiCA-compliant e-money token (EMT) marks a positive step forward for the crypto ecosystem in the EEA region,” Teng wrote.

“We are hopeful that there’ll be more MiCA-compliant EMTs soon.”

Highlighting the benefits of MiCA regulations, Teng added that the new law brings clear rules for digital assets in the European Economic Area (EEA), which will help integrate crypto in the mainstream financial system.

“This will create a highly competitive market for EMTs, which is crucial for offering users a wide range of options and driving down costs,” the Binance executive noted in his statement.

“We believe that EMTs will play a significant role in the future of finance, and we are excited to see how this space develops in the coming years.”

With MiCA regulations in effect, firms will be held more accountable for their risk and compliance management, banking infrastructure, and assurances from major public audit firms.

The oversight, promoting regulatory clarity and transparency, will inspire increased customer confidence because of improved consumer protection.

For new players looking to join the space, however, entry barriers will likely be higher as the MiCA framework aims to achieve its mandate — to protect consumers and investors, ensure financial stability, and foster innovation.

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