Circle Applies for Licenses in France

The USDC co-issuer—Circle—, in France подала заявки for local licences as a digital-asset service provider and an e-money institution.

The initiative is in line with plans to expand across the European continent.

Circle plans to roll out its local-market flagship product—the euro-denominated stablecoin EUROC—and begin its recognition process under the provisions of the Markets in Crypto-Assets Regulation (MiCA).

In February 2023, France tightened the registration rules for cryptocurrency companies. Under the changes, applicants must comply with internal-control and cybersecurity standards and have a system for managing conflicts of interest.

Earlier, representatives of the stablecoin issuers—the Circle and Coinbase— accused American banks of destabilising the crypto markets.

On 11–12 March there was a sharp deviation of USDC from parity after reports that Circle held part of the asset’s backing reserve at SVB ($3.3 billion). The company said immediately that it was using corporate funds and external capital to support the stablecoin.

The situation normalised after banking regulators’ decision to rescue the bank’s depositors.

From 10 to 15 March, Circle reduced the USDC supply by 4.5 billion coins.

In November 2021, the company announced the launch of a ‘stablecoin’ pegged to the Japanese yen via its venture arm Circle Ventures. In June 2022, Japan’s parliament passed a bill that recognised stablecoins as digital money. It will come into force one year after approval.

A year later, Circle obtained a licence to issue ‘stablecoins’ in Singapore.