Circle, the issuer of the USDC and EURC stablecoins, has announced its compliance with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework, becoming the first global stablecoin issuer to do so.

The company obtained an Electronic Money Institution (EMI) license from France's banking regulatory authority, the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

"Since our founding, Circle has sought to build durable, compliant, and well-regulated infrastructure for stablecoins, and our adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance,” said Circle co-founder and CEO Jeremy Allaire, in a release.

MiCA took effect in June 2023 and offers a robust regulatory scheme for crypto assets across the European Union. While it implemented stricter rules about some elements of the crypto industry, it also provides clear guidelines for crypto firms to work within.

The compliance allows Circle to issue both USDC and EURC stablecoins in the European market, which are respectively pegged to the U.S. dollar and the euro. The company has launched Circle Mint for business customers in Europe, providing access to mint and redeem these stablecoins.

"Achieving MiCA compliance through our French EMI license is a significant step forward, not just for Circle, but for the entire digital financial ecosystem in Europe and beyond,” added Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, in a release.

USDC is the second-largest stablecoin on the market following Tether’s USDT, with USDC having a $32.4 billion market cap at present compared to USDT’s $112.6 billion cap. USDT has more than six times the trading volume over the last 24 hours, per data from CoinGecko.

Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Andrew Hayward.