Circle Internet Financial, LCC, a global digital financial technology firm and the issuer of USD Coin (USDC) and Euro Coin (EUROC) stablecoins, has announced its regulatory applications in France. The company’s move marks its key expansion in Europe and it signals a major gain for the crypto-friendly nation.
Circle’s European Expansion
According to a press release during the Paris Blockchain Week, Circle already filed applications to become a licensed Electronic Money Institution (EMI) and a registered Digital Asset Service Provider (DASP) under the supervision of French regulators Autorité de Contrôle Prudentiel et de Résolution (ACPR) and Autorité des Marchés Financiers (AMF). This strategic move highlights Circle’s commitment to expanding its operations in Europe and makes France a critical hub for the company’s operations in the continent.
The company claims that its decision to seek a full license from the AMF could potentially make it the first firm to acquire full authorization under the DASP regulatory system. This will allow the company to provide a variety of its goods and services in complete accordance with French laws. Likewise, this ensures that its consumers are also well-protected by the same set of laws.
Circle Chief Executive Officer Jeremy Allaire said that he is excited about the company’s European growth strategy and its application in France. He commended France’s full efforts towards innovation-forward crypto regulatory practices that perfectly align with his company’s vision for the future of the digital payments sector, too.
Meanwhile, Circle Chief Strategy Officer and Head of Global Policy Dante Disparte assures the public of the company’s commitment to expanding its presence and engagement with regulators in the European market. He acknowledged that their operations in France are critical to their goals, so he is optimistic about continuing to work with the AMF and the ACPR to expand the application of the crypto firm’s product suite in France.
Circle’s Regulation-First Approach
Circle was established in 2013. Since then, it has adopted a regulation-first approach in promoting the use of fully-reserved and fiat-backed digital currencies to help businesses.
Circle’s flagship product for the European market is the EUROC, a euro reserve-backed stablecoin traded 24/7 with an estimated market cap of $31.2 million. The request of the company for licenses from the crypto-friendly nation will let it offer the token within the country’s borders in conformity with its existing eMoney token rules.
The firm’s headquarters is in Boston, Massachusetts. At present, it is licensed in 48 jurisdictions all across the US as a money transmitter. Moreover, it holds an in-principle approval as a Major Payments Institution License holder in Singapore.
In Line with France’s Crypto Hub Ambitions
Circle’s decision to set up shop in France reinforces the French government’s ambitions to become a hub for Web3 technologies, which was pursued by the regime of President Emmanuel Macron and Economy and Finance Minister Bruno Le Maire since 2017.
Jean-Noël Barrot, Minister Delegate to the Ministry of Economy, Finance and Industrial and Digital Sovereignty, in charge of Digital Transition and Telecommunications, applauded Circle for choosing France as its base of operations in Europe. For him, it is a critical move that strengthens the country’s position as a global hub for innovation.
Final Thoughts
The approval of Circle’s license applications in France holds a crucial advantage for all the parties involved. It will allow the firm to expand its operations significantly in the European borders while also reinforcing France’s transformation into a major crypto hub in the region. With that, there’s no reason for the government to deny its request based on the facts presented here.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager of a consultancy firm.
