Circle Seeks French Crypto License As It Expands In Europe

Updated: 21 March 2023

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What- Circle files for an application to register as a crypto service provider and a licensed electronic money institution
Why- The applications are part of the European expansion strategy
What Next- If the registration goes through, Circle will offer its products to its customers in France and On-shore its reserve-backed stablecoin EUROC

Circle, a USDC and EUROC stablecoin issuer, seeks a license to enter the European market. The platform has filed for an application to register as a crypto service provider in France and a licensed electronic money institution, Circle noted in a statement. Notably, the platform intends to make France a hub for expanding European operations. Additionally, Circle is ready for the new European Union legislation requiring stablecoin issuers to address the stability risks.

Circle is pleased to make France the base of our regulatory operations in Europe – announced today in the lead up to Paris Blockchain Week. https://t.co/e8C5i7kBNx

— Dante Disparte (@ddisparte) March 21, 2023

However, if the registration goes through, Circle can offer its products to customers in France and on-shore its reserve-backed stablecoin (EUROC), as per the statement.

According to Circle Co-founder and CEO Jeremy Allaire, he said:

We are excited to kick our European growth strategy into high gear with this application. France’s efforts towards innovation-forward crypto regulation are commendable and closely align with Circle’s vision for the future of the digital payment sector.

Nonetheless, the firm aims to acquire DASP registration. The DASP registration facilitates an initial path to support sensible digital asset innovation.

Recently, France tightened its crypto licensing rules, following the introduction of European Union-wide digital assets known as Markets in Crypto-Assets (MiCA), come next year. As the EU’s regulation is underway, it authorizes the issuers of any digital asset linked to fiat to retain reserves. In April 18, the European Parliament will hold its final discussions concerning the MiCA.

Circle’s progress in the crypto industry

However, Circle already holds various United States licenses and is well known for its dollar-backed USDC stablecoin in Singapore. The United States banking system recently took a toll on the well-known USDC stablecoin. It led to USDC de-pegging due to some of its stablecoin reserves stuck at the Silvergate Valley Bank. Despite the setback, Circle did not stop progressing as it disclosed its application to the European market.

Circle is the latest firm to choose Paris as its European headquarters. Other significant crypto firms include Binance, Bitstamp, and Crypto.com, which have marked their presence in France in the past two years.