The failure of the U.S. banking system took a toll on the prominent stablecoin USDC. As the asset lost its peg, its issuer, Circle noted that its reserves backing USDC were stuck at the Silicon Valley Bank. Despite this setback, the firm did not stop making progress. More recently, it was brought to light that Circle is seeking a license to enter the European market.
The stablecoin issuer Circle has submitted applications to become a licensed e-money provider in France, as well as to register as a crypto provider. If the registration is successful, Circle will be allowed to sell its products to clients in France and “onshore” its stablecoin EUROC, according to the release. The firm is aiming to acquire a DASP registration. Companies that register must go through inspections on governance and anti-money laundering procedures in order to enter the French market.
Additionally, the stablecoin issuer stated that it wants to establish France as a base for its expanded activities in Europe and that it is getting ready for new EU regulations requiring stablecoin issuers to address stability issues.
EU’s Markets in Crypto-Assets [MiCA] regulation is still underway. However, it puts trading restrictions on cryptocurrencies linked to foreign assets like the U.S. dollar. Along with this, it mandates that issuers of any digital assets connected to fiat retain reserves. On April 18, the European Parliament will hold its final discussion on the MiCA. For companies that are already registered in an EU member state, this will also feature a new temporary provision.
Why France?
As seen over the last couple of months, several firms have been veering into France, thanks to its crypto-friendly laws. Binance, Crypto.com, and Bitstamp are among a few exchanges that entered the French market this year. Following suit, Circle could soon be landing in the region. Lauding France for its “comprehensive efforts towards innovation-forward crypto regulation,” Jeremy Allaire, the CEO of Circle said,
“We are excited to kick our European growth strategy into high gear with this application.”