Stablecoin issuer Circle has filed applications to register as a crypto provider in France, and to gain a license as an e-money provider, the company said Tuesday.
Circle said it is seeking to make France a hub for expanded European operations and is preparing for new European Union rules that require stablecoin issuers to manage stability risks.
“We are excited to kick our European growth strategy into high gear with this application,” Jeremy Allaire, Circle’s chief executive officer, said in an emailed statement, referring to France’s “comprehensive efforts towards innovation-forward crypto regulation.”
Registration requires companies to undergo checks on governance and money-laundering protocols, enabling them to serve the French market.
Circle also said it wants its euro-backed stablecoin EUROC to conform with the EU’s Markets in Crypto-Assets (MiCA) regulation. It requires issuers of any cryptocurrencies tied to fiat to hold reserves and imposes caps on the trading of those matched to foreign currencies like the U.S. dollar.
MiCA is set for a final debate in the European Parliament on April 18, and will include an extra transitional provision for companies already registered within an EU member country.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.