Stablecoin issuer Circle announced it has received permission to offer two of its tokens under the EU’s Markets in Crypto-Assets (MiCA) Regulation.

Circle obtained an Electronic Money Institution (EMI) license from France’s banking authority to issue its USD-pegged stablecoin, USDC, which has a market cap of $33.7 billion, in the EU. The license also permits it to issue its euro-pegged stablecoin, EURC, which has a market cap of $37.1 million, in the region.

The company said its stablecoin minting and redemption service, Circle Mint, is also available to business users in the European market.

Circle co-founder and CEO Jeremy Allaire said the firm has always aimed to create “durable, compliant, and well-regulated infrastructure for stablecoins.” He added that Circle’s compliance with MiCA regulation marks a “milestone in bringing digital currency into mainstream scale and acceptance.”

Coralie Billmann, Managing Director of Circle France, said that the outcome is the result of months of work between Circle France and regulators.

Circle called itself the first global stablecoin issuer to comply with MiCA, adding that, of the ten highest cap stablecoins, USDC is solely compliant with those regulations.

Stablecoin Compliance in EU

MiCA compliance extends beyond Circle. Critically, the firm’s larger competitor, Tether, which issues USDT and EURT, has not yet obtained similar approvals.

USDT has a market cap above $112 billion.

Tether is involved in consultations with regulators, according to a June 4 report from the The Block. However, Tether CEO Paolo Ardoino said his company is “concerned that MiCA contains several problematic requirements” that complicate its role as issuer and add risk to EU stablecoin operations.

Crypto exchanges are beginning to modify listings amidst the new rules. Uphold is delisting USDT and five other stablecoins in the EU while maintaining support for USDC, EURC, and PYUSD. OKX is delisting USDT in affected regions while supporting USDC. Bitstamp is delisting EURT.

Binance said it will continue spot trading, conversion, and wallet support for all stablecoins until further notice but said some of its products will halt support for unauthorized stablecoins in the EEA starting June 30. Binance excluded USDC from the restrictions following its approval.

Kraken has no plans to delist USDT in the EU, contrary to reports from Bloomberg.

MiCA has many components affecting regulation of crypto and blockchain. Rules specifically concerning stablecoins came into effect on June 30, 2024.