Circle seeks France license to launch Euro stablecoin
Circle, the issuer of the second-largest stablecoin by market capitalization, is seeking to get a dual registration in France as it aims to on-shore its flagship product for the European market – EUROC – a reserve-backed stablecoin.
The Boston-based firm said it has filed applications to become both a licensed Electronic Money Institution and a registered Digital Asset Service Provider (DASP). That requires approval from the Autorité des Marchés Financiers (AMF), followed by clearance from the country’s top regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
Once approved, Circle plans to roll out its euro-pegged stablecoin, providing a liquid and stable means of obtaining exposure to the single European currency. Dubbed ‘Euro Coin (EUROC),’ the asset is issued under the same full-reserve model as Circle’s USD Coin (USDC), a stablecoin pegged to the US dollar currency with more than $50 billion in circulation.
Created to satisfy euro-biased crypto enthusiasts, Circle believes that the token can provide protection during periods of extreme volatility in the market while improving the risk and return metrics of crypto-investment portfolios.
Similar to USDC, EUROC is fiat-collateralized with each stablecoin unit is backed by a corresponding unit of Euro to ensure it’s always 100% backed by fiat money held in euro-denominated banking accounts.
“This move signifies Circle’s commitment to expanding its operations in Europe, where France would become a key hub for the company’s operations. Registration with the AMF will enable Circle to offer a suite of products and services to customers in France in full compliance with local regulations,” the company said.
The move comes as France is becoming a go-to location in the European Union for crypto companies. Circle is the latest to join the list of crypto firms that have scored a major regulatory approval in France, and it follows the steps of Binance and Crypto.com. In recent months, brokerage firm eToro and Digital Currency Group’s Luno have also registered with France’s AMF.
These platforms went through rigorous review, particularly around the topics of anti-money laundering and combatting terrorism financing, before receiving regulatory approval.
Nevertheless, France is now moving ahead with its plans to tighten regulation, supervision and oversight of cryptocurrency companies.
