The recent failure of the US banking system had a significant impact on the popular stablecoin USDC, causing its issuer—Circle—reserves, to become stuck at Silicon Valley Bank. Nonetheless, Circle wasn’t deterred and recently announced it had submitted applications for a license to enter the European market as an e-money provider in France and as a crypto provider. If the registration is successful, Circle will be permitted to offer its products to customers in France, including its EUROC stablecoin.
However, Circle must pass inspections on governance and anti-money laundering procedures per French regulations to register. With a DASP registration in sight, the firm looks forward to future growth in the French market.
The stablecoin issuer aims to make France the base of its European expansion and has stated that it is preparing for new EU regulations, such as the Markets in Crypto-Assets (MiCA) regulation. The rule puts restrictions on cryptocurrencies pegged to foreign assets like the US dollar while requiring issuers of digital assets linked to fiat currencies to keep reserves. On April 18, the European Parliament will discuss MiCA in its final meeting and offer a temporary provision for companies registered in an EU member state.
The crypto market boom in France
Recent months have seen many companies making inroads into France, taking advantage of the country’s favorable stance towards cryptocurrencies. Binance, Crypto.com, and Bitstamp are among those exchanges to have entered the French market this year, and now Circle may soon be joining them. Jeremy Allaire, CEO of Circle, has praised France for its “comprehensive approach to encouraging innovation in crypto regulations,”
The CEO added, “We are excited to kick our European growth strategy into high gear with this application.”