Europe approves this crypto under MiCA regulations
Last Monday we wrote that the days of Tether and their stablecoin USDT in Europe may be over past could be. The timing could not be better, competitor Circle is taking advantage of the moment and shares that they have indeed achieved success with European regulations.
Circle is the issuer of stablecoin USDC and EURC.
First of Europe
On July 1, Circle achieved a major victory in the digital asset regulatory arena, becoming the first to receive approval for its stablecoins under the European Union’s Markets in Crypto-Assets (MiCA) framework.
This announcement by Jeremy Allaire, co-founder and CEO of Circle, comes as a relief to investors holding Circle’s USDC and EURC stablecoins, who are now provably compliant with the new rules.
This removes concerns that investors would have to cash in or move their holdings to other assets to remain compliant.
Importance of MiCA
Circle also announced that France has been chosen as the country of its European headquarters. This decision was influenced by France’s progressive approach to digital asset regulation and Circle’s strong working relationship with the French Authority for Prudential Supervision and Resolution (ACPR).
Allaire also emphasized the historical importance of Micathe first comprehensive regulatory framework for digital assets in the EU. This, he said, is a major step forward for the legitimacy and stability of stablecoins and a testament to the maturing digital asset market.
Turning point for Circle
Circle’s USDC stablecoin had a 20% market share at the time of writing with a market cap of $32 billion. However, Tether remains the undisputed leader with an impressive 70% market share and a market capitalization of $112 billion.
Circle’s approval in Europe could be a turning point, increasing demand for USDC and potentially helping Circle close the gap with Tether. This gain comes at a crucial time for Circle, as it has been steadily losing market share to Tether.
By being the first, Circle can position USDC as a safe and trusted haven for European investors, especially those who may have been wary of the unregulated crypto market.
