Regulation
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USDC co-issuer Circle has applied for local licenses as a digital asset service provider and electronic money institution in France.
The initiative is consistent with plans for expansion on the European continent.
Circle plans to launch its flagship product for the local market, the euro-denominated stablecoin EUROC, and launch its recognition process under Comprehensive Digital Asset Market Regulation (MiCA).
In February 2023, France tightened the rules for registering cryptocurrency companies. According to the changes, applicants must comply with the rules of internal control, cybersecurity and have a system for managing conflicts of interest.
Earlier, representatives of the co-issuers of the stablecoin, Circle and Coinbase, accused American banks of destabilizing the cryptocurrency market.
On March 11-12, there was a sharp deviation of the USDC rate from parity after the announcement of the storage of Circle in the SVB of part of the asset’s reserve collateral ($3.3 billion). The company immediately assured that they were using corporate funds and external capital to support the stablecoin.
The situation returned to normal after the decision of banking regulators to rescue depositors of the financial institution.
From March 10 to March 15, Circle reduced the USDC supply by 4.5 billion coins.
Recall that in November 2021, the company announced the launch of a “stable coin” pegged to the Japanese yen through the venture arm of Circle Ventures. In June 2022, the Japanese Parliament passed a bill that recognized stablecoins as digital money. It will enter into force one year after approval.
A year later, Circle received a stablecoin issuer license in Singapore.
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