Circle, the issuer of stablecoins, has taken a significant step towards expanding its business in Europe.
The Boston-based company has applied for two licenses from French regulators, which, if approved, would allow Circle to offer its products to customers in France.
Specifically, Circle has submitted applications to become a Registered Digital Asset Service Provider (DASP) and a licensed e-money issuer. The move is part of Circle’s broader European growth strategy, according to CEO Jeremy Allaire.
One of Circle’s objectives in France is to ensure that its euro-backed stablecoin, EUROC, complies with the EU’s Markets in Crypto Assets (MiCA) regulation.
To obtain a license under France’s stricter licensing rules for cryptocurrency companies, firms must demonstrate that they store client funds separately from their own.
Additionally, crypto companies must report to regulators regularly, warn customers of potential risks, and enforce user rights protections. These rules will apply to crypto firms that register from July 1st.
Recent market turmoil caused by the collapse of the Silicon Valley Bank (SVB) had a brief impact on Circle’s USDC stablecoin, which lost its dollar peg.
However, after Circle reported that it had $3.3 billion in SVB-related reserves, the stablecoin soon recovered its value.