- USDC stablecoin issuer Circle is expanding operations into the French market.
- The firm has secured conditional registration with the regulatory authority.
- Circle’s operations within France are contingent on full regulatory approval.
The United States’ increasingly stringent regulatory stance against the cryptocurrency industry has persisted throughout the year, casting a shadow of uncertainties on regional operations. As industry critics intensify their advocacy, crypto asset providers are prompted to seek out more favorable regions in a quest for a stable foundation.
Against this backdrop, USDC stablecoin issuer Circle has ventured into the French market to establish a European regulatory base.
USDC Issuer Circle Deepens European Expansion
In an official release on Thursday, Circle announced that it had obtained conditional registration as a Digital Asset Service Provider (DASP) from the French Financial Markets Authority (AMF).
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While Circle’s activities in France remain contingent on specific conditions that must be met before full-scale operations can commence, the firm emphasized that it is making efforts to facilitate a complete entry into the market.
The USDC and EURC issuer is mandated to secure approval as a payment services provider (PSP) or register as an agent of a PSP. The fulfillment of this condition hinges on obtaining an Electronic Money Institution license, a step for which Circle has already applied.
In addition to the regulatory process, Circle also announced the selection of Coralie Billmann to lead its licensed operations in France. This appointment, however, is subject to regulatory approval.
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Circle’s deepening European expansion comes on the heels of United States regulators’ and policymakers’ intensifying regulatory measures, which has directly impacted Circle in the past weeks.
U.S Tightening Regulatory Approach
On November 9, 2023, the non-profit watchdog organization Campaign for Accountability (CfA) leveled allegations of “apparent complicity” in terrorism funding against Circle in a letter to Senators Elizabeth Warren and Sherrod Brown.
The stablecoin issuer was accused of being in close ties with TRON founder Justin Sun despite the latter’s infamous history of unscrupulous behavior.
Circle promptly denied the allegations in its letter to the legislators, distancing itself from the allegations put forth by the CFA. The firm denounced the claims as replete with errors and misleading, asserting that it does not facilitate or finance illicit activities.
While the allegations against Circle have since been put to rest, it is a part of the ongoing regulatory scrutiny in the United States. The ‘regulation by enforcement’ approach within the region has heightened, and recent weeks have seen critics like Senator Warren intensify their advocacy against the industry.
On the Flipside
- The French market regulator has also issued an operational license to crypto exchange Coinbase.
- Senator Warren recently labeled the crypto industry a threat to the United States.
- The U.S. national crypto community is advocating for crypto-friendly political candidates to promote a leadership change in 2024.
Why This Matters
Circle’s entry into France underscores its determination to establish a strong presence within the European market, where regulatory conditions may be more conducive to its operations.
Read more on Circle’s EURC stablecoin:
Circle Amplifies EURC Accessibility with Stellar Alliance
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