USDC issuer Circle seeks regulatory approval in France amid US banking troubles

Circle, the issuer of the USDC stablecoin, is reportedly seeking regulatory approval in France as it faces increasing banking challenges in the US. The move is aimed at providing regulatory compliance for its European clients and follows similar steps taken by other crypto companies seeking to establish a foothold in the region. Circle has faced difficulties with US banking partners, which have led to temporary disruptions in USDC transfers. The company is also said to be exploring other regulatory approvals in Europe and Asia to expand its reach.

Circle, the issuer of USD Coin (USDC), has announced its decision to apply for a license as an Electronic Money Institution and registered as a Digital Asset Service Provider (DASP) in France. The move expands the operations of the company in Europe. Circle has expressed that registering with regulatory authorities would enable its Euros-pegged stablecoin Euro Coin (EUROC) to become a compliant e-money under Europe’s Markets in Crypto-Assets (MiCA) regulations. The stablecoin issuer’s request is subject to the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and Autorité des Marchés Financiers (AMF). If approved by the AMF, Circle would become the first company to receive full authorization under the DASP regulatory regime.

Circle CEO Jeremy Allaire expressed his aspirations for the company to become one of the first firms to obtain full-authorisation under the reinforced PSAN licensing regime. Further, he hopes that the growth plans in the country will strengthen France’s position as a global hub for innovation. However, Circle’s flagship product, USD Coin, received increased scrutiny following its recent depeg. The stablecoin issuer disclosed that it had exposure to the failed crypto-friendly bank, Silicon Valley Bank. As a result, USDC supply has dropped by roughly 15% in the last 30 days to $35.37 billion, according to CryptoSlate’s data.

Possible Headlines for the article:

– Circle Applies for Licensing in France to Expand Operations in Europe and Comply with MiCA Regulations
– Circle to Become First Company Under DASP Regulatory Regime by Obtaining Approval from AMF
– Circle Seeks License as Electronic Money Institution and Registered DASP in France, Losing Ground after USDC Depeg

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