Circle, the global stablecoin issuer, has become the first company to gain regulatory approval under the European Union’s new crypto regulatory framework. This means that Circle’s stablecoins, USDC and EURC, are now compliant with the new rules. This news comes as a relief to investors who were concerned about having to redeem their stablecoins or switch to other digital assets in order to stay compliant.
Jeremy Allaire, the co-founder and CEO of Circle, announced that the company has chosen France as its European headquarters. He praised France’s progressive approach to digital asset regulation and highlighted the company’s working relationship with the French Prudential Supervision and Resolution Authority (ACPR).
Allaire also reflected on the significance of the European Union’s regulatory overhaul, which is the first comprehensive framework for digital assets. He emphasized how far the asset class has come since its inception.
The implementation of the new regulatory framework has led to several exchanges making changes to their stablecoin policies and offerings. Uphold, for example, delisted six stablecoins, including Tether, Dai, TrueUSD, Gemini dollar, Pax dollar, and Frax Protocol. Bitstamp also delisted Tether’s EURT stablecoin, despite being one of the first exchanges to list it. Binance took a softer approach by adopting a “sell-only” strategy for certain stablecoin products in the European market.
Overall, the European Union’s regulatory changes have had a significant impact on the stablecoin market, with exchanges and investors adapting to the new rules.