Circle embarks on the road to certification in France and Europe

L’AMF grants a conditional PSAN registration à Circlewhich names a director operations for the France. The next step for the stablecoin issuer will be to obtain a approval as an electronic money institution.

This is a further step in the journey begun by Circle to comply with French crypto regulations, then with MiCA. The company announced its ambition to set up in France earlier this year with the help of law firm De Gaulle Fleurance.

The issuer of USDC, the second-largest stablecoin backed by the dollar, continues on its regulatory path, announcing that it has been granted a conditional PSAN registration. The stablecoin issuer is not yet eligible for registration and joins the other official PSANs listed by the AMF.

Electronic money institution approval required

Circle points out in a press release that the company’s activity requires it to meet a number of prerequisites. The firm states that it must obtain authorization as a payment service provider (PSP) or registration as an agent of a PSP.

In order to meet this regulatory requirement, Circle intends to obtain an e-money establishment license. An application to this effect has been submitted. And obtaining such approval is a necessary step.

This requirement applies “if you wish to issue, manage and make available electronic money as defined in Article L. 315-1 of the French Monetary and Financial Code, as part of your regular business activities”, writes the ACPR.

France, Circle’s regulatory base in Europe

This procedure is a step towards Circle’s compliance with the future MiCA regime. In the shorter term, the company is aiming to comply with regulatory obligations in France, so as to be able to conduct its operations there.

The choice of France as the European regulatory base is based on the country’s clear rules for responsible innovation in fintech and digital assets, while leveraging France’s dynamic entrepreneurial, technology, banking and financial services ecosystem,” says Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy.

However, the international crypto player is anticipating the finalization of these obligations by appointing a Director of Operations in France. The position has been entrusted to Coralie Billmann, presented as a veteran of the payments industry.

MiCA a reality from 2024 for stablecoins

Coralie Billmann’s contribution to the recent launch of the payment business of 3S Money Club in Europe, a licensed electronic money institution, is of particular interest to her new employer.

Billmann, whose appointment is subject to regulatory validation, “will play a decisive role in preparing for MiCA and obtaining the passport for Circle’s products and services”. And the company needs to act fast if it is to be ready on time.

From June 2024, new MiCA-related obligations will come into force, SG-Forge reminded RoyalsBlue.com in a recent interview.

Stablecoins denominated in euros, wherever they may be, will have to comply with MiCA regulations, and exchange platforms offering services to European customers will no longer be able to offer stablecoins that are not MiCA-compliant, whether they are in euros or denominated in another currency”, stated CEO Jean-Marc Stenger.

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