In order to develop its growth in France and the rest of Europe, Circle has filed applications to obtain PSAN registration and approval as an electronic money institution. This announcement demonstrates the attractiveness of the French regulatory environment.
Circle is interested in France and the PSAN status
Circle, the issuer of the popular stablecoin USDC, has announced that it has applied for registration as a Digital Asset Service Provider (DAP).
On the other hand, the company also revealed that it has applied to be licensed as an electronic money institution. These two applications have been filed with the Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel et de résolution (ACPR).
It is within the framework of the Circle Forum Paris, that Jeremy Allaire, CEO of the company, announced this alongside Jean-Noël Barrot, Minister Delegate in charge of the Digital Transition and Telecommunications :
The company @circle, world leader in digital assets, chooses France to establish its headquarters in Europe. Further proof of our country’s renewed attractiveness since 2017. pic.twitter.com/ifEDYkWjmw
– Jean-Noël Barrot (@jnbarrot) March 21, 2023
When this initiative becomes a reality, it will give Circle a head start on MiCA compliance for EUROC, its euro-backed stablecoin. The French regulation should thus serve as a springboard for Circle to develop its activities in Europe.
Jeremy Allaire, has also given a glimpse of his ambitions for the future:
With this application, we are delighted to be able to step up a gear with our European growth strategy. France’s comprehensive efforts towards innovation-driven crypto regulation are commendable and closely align with Circle’s vision for the future of the digital payments industry. “
The European continent as a growth driver
Through this announcement, it is interesting to note the attractiveness of the French legal framework, which has already been chosen by global exchanges such as Binance or Crypto.com to name a few.
While Circle has emerged from the difficulties with the USDC as a resilient player, the European market could offer growth opportunities. Its stablecoin EUROC has everything to gain, as since its launch in the summer of 2022, it still has a relatively small capitalization of just under 29 million euros.
EUROC therefore has a lot of room for growth if we compare it to Tether EURT, for example, the first euro-linked stablecoin on the market, with a capitalization of almost 206 million euros.