Circle Tries To Expand Into France With Its New European Headquarters In Paris

Key Points:

• Circle stated that it has applied to become a licensed Electronic Money Institution in France.
• The corporation plans to grow in the European Union from its headquarters in Paris.
• Circle’s registration will allow it to provide a portfolio of goods and services to consumers in France while fully complying with local legislation.

Circle, the USDC stablecoin issuer, plans to establish its European headquarters in Paris, citing the crypto-friendly atmosphere fostered by President Emmanuel Macron’s administration as a key factor in the choice.

Circle said in a statement that the Boston-based company submitted separate applications to become a registered digital asset service provider and a licensed Electronic Money Institution.

The business said that it intends to make France a base for expanding European operations and that it is ready for new European Union legislation requiring stablecoin issuers to address stability issues. Circle Co-Founder and CEO Jeremy Allaire stated:

“We are excited to kick our European growth strategy into high-gear with this application. France’s comprehensive efforts towards innovation-forward crypto regulation are commendable and closely align with Circle’s vision for the future of the digital payments sector.”

Companies that register must go through inspections on governance and money-laundering processes before they may serve the French market.

Circle’s approval as a Prestataire de service sur actifs numériques (PSAN) institution will allow it to on-shore its flagship product for the European market, EUROC, a reserve-backed stablecoin.

The company said it would begin the process of enabling EUROC to become a Markets in Crypto-Assets (MiCA) conforming e-money tokens under the new regime.

Circle is the latest significant crypto startup to choose Paris as its European headquarters, after similar vows made by digital-asset exchanges Binance and Crypto.com in the previous two years.

In 2019, France introduced a regulatory framework for cryptocurrency, including a streamlined registration procedure for businesses.

Circle’s methodology was recently challenged when USDC de-pegged from the dollar as a result of part of the stablecoin’s deposits being parked at Silicon Valley Bank as it approached bankruptcy. In pushing the adoption of fully-reserved, fiat-backed digital currencies, the business has taken a regulatory-first strategy.

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