Circle Makes History as First Stablecoin Issuer to Meet Canada’s New Regulatory Requirements
Circle has secured a significant milestone by becoming the first stablecoin issuer to comply with Canada’s latest regulatory standards for stablecoins. The company, renowned for issuing the USDC stablecoin pegged to the US dollar, received approval from the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) after meeting the Value-Referenced Crypto Asset (VRCA) requirements set by Canada.
This approval allows Circle to offer its USDC stablecoin on registered Canadian cryptocurrency trading platforms that adhere to the specified standards. Jeremy Allaire, the co-founder and CEO of Circle, expressed his excitement through a post on X, emphasizing the significance of this achievement. He highlighted the USDC’s compliance with the new regulations in Canada, making it the first major dollar stablecoin to meet the country’s regulatory framework.
The approval comes just before the CSA’s deadline for delisting non-compliant stablecoins, set for December 31, 2024. Dante Disparte, the chief strategy officer and head of global policy at Circle, underscored the importance of USDC’s availability in Canada, emphasizing Circle’s commitment to complying with global regulatory norms and promoting transparency in the digital financial ecosystem.
In addition to its regulatory success in Canada, Circle has established a strong regulatory presence in other regions. The company operates under the US Bank Secrecy Act and holds money transmitter licenses in multiple US states. Furthermore, in July, Circle made history by becoming the first stablecoin issuer to receive regulatory approval under the European Union’s Markets in Crypto-Assets (MiCA) regulations, allowing the issuance of USDC and Euro Coin (EURC) stablecoins across the EU.
Moreover, Circle obtained a Major Payment Institution (MPI) license for digital payment token services in Singapore in June 2023. This license from the Monetary Authority of Singapore enables Circle to provide digital payment token services, cross-border money transfers, and domestic money transfer services in Singapore.
With USDC boasting a market capitalization of $40.6 billion, ranking second only to Tether’s USDT, valued at over $135.8 billion, Circle’s adherence to regulatory standards positions it as a key player in the stablecoin market.
Overall, Circle’s groundbreaking achievement in meeting Canada’s new regulatory requirements underscores its commitment to compliance, transparency, and innovation in the global digital asset landscape.
