Circle hopes to be the first and only firm to acquire complete approval from the AMF.
The company has applied to become both an EMI and a DASP.
Circle, the company behind the USD Coin (USDC) stablecoin, has submitted an application for regulatory authorization in France. In order to legally operate in France, the company has applied to become both an Electronic Money Institution (EMI) and a DASP (Digital Asset Service Provider).
On March 21, Circle issued a press statement announcing it has applied to the French Prudential Supervision and Resolution Authority and the French Financial Markets Authority (AMF) for licenses as an Electronic Money Institution and a Digital Asset Service Provider, respectively.
Eyeing European Market
Circle hopes to be the first and only firm to acquire complete approval from the AMF under the DASP regulatory environment. In addition, the business hopes to use its French operations as a springboard to increase its visibility and involvement with regulators throughout the European market.
From the year 2024 forward, all digital asset enterprises in the European Union, including stablecoin issuers, will need to apply for the license under the MiCA rule. It will also allow Circle to begin developing the Euro Coin (EUROC) stablecoin, which has the potential to become a dominant e-money token under the new regulatory framework.
Due to crypto-friendly regulations and increased crypto acceptance, many cryptocurrency service providers, like Binance and Crypto.com, have established European operations in France. Also, the financial crisis in the United States and the tightening of regulations have put pressure on Circle.
After disclosing a $3.3 billion exposure to Silicon Valley Bank, Circle’s USDC depegged last week, dropping to $0.87 against the US dollar. However, it has regained its peg and is trading back at $1.