US tightens control over cryptocurrency transactions: new reporting rules

Circle, known as the issuer of the USDC stablecoin, has made significant progress in the European crypto space. It became the first company to receive a license from the Electronic Money Institution (EMI) for stablecoin operations in accordance with the new cryptocurrency regulation law in the European Union (MiCA).

Expansion into the European market

This license gives Circle access to a vast market encompassing 27 member states of the European Union. Such permission will allow the company to significantly expand its presence and influence in the European financial market.

To carry out operations in the European Union, Circle has created a subsidiary company, Circle Mint France. This entity will be responsible for issuing both the already well-known USDC stablecoin and the new euro-denominated EURC stablecoin.

Circle’s CEO, Jeremy Allaire, commented on this event, emphasizing its significance for the European financial sector: «The entire European regulated financial sector can now adopt blockchain-based financial infrastructure, which will significantly expand the utility of stablecoins. We see significant interest in EURC from large enterprises, financial institutions, and payment companies.»

Circle began the process of obtaining licenses in France in the spring of 2023, applying for the status of a digital asset service provider and electronic money institution. Even then, the company announced plans to issue the EUROC stablecoin and integrate it in accordance with MiCA requirements.

Prospects for stablecoins

Jeremy Allaire is optimistic about the future of stablecoins. He suggests that by 2025, the role of these digital assets in the global economy will change substantially, turning them into a legal and widely recognized monetary instrument.