Circle has become the first stablecoin issuer to meet Canada’s new listing requirements for its USD Coin (USDC), marking a significant milestone amid ongoing reports of layoffs within the company.
In a Dec. 4 post on X, Circle CEO Jeremy Allaire announced that USDC is the first of the top dollar-backed stablecoins to comply with Canada’s updated regulations for digital assets.
The rules, set by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA), cover Value-Referenced Crypto Assets (VRCA).
The compliance means USDC will remain available on registered crypto exchanges and trading platforms in Canada. These platforms must meet the new VRCA standards by Dec. 31, and non-compliant stablecoins will be delisted.
Several notable crypto firms, including Gemini, Binance, and Paxos, have exited the Canadian market in the past year, citing regulatory challenges. These departures followed the Canadian government’s introduction of stricter rules for the crypto industry.
However, Circle’s Head of Global Policy, Dante Disparte, highlighted that USDC’s continued presence in Canada demonstrates the company’s commitment to global regulatory standards.
He emphasized that Canada’s forward-thinking approach to regulation enhances the integrity of digital asset markets while supporting USDC’s use within the country’s growing ecosystem.
Workforce reduction
At the same time, Circle’s regulatory success coincides with reports of a 6% workforce reduction within the company, Bloomberg reported.
A Circle spokesperson reportedly clarified that the layoffs were part of routine operational reviews to optimize investments and manage expenses. The spokesperson added that the firm continues to invest in critical teams and infrastructure while slightly scaling back on certain roles in other areas.
Meanwhile, the company remains focused on expanding its geographic footprint, particularly in areas like Artificial Intelligence.
These moves coincide with USDC’s continued dominance as the second-largest stablecoin in the crypto market. According to CryptoSlate’s data, the digital asset controls 20% of the market with its $40 billion supply.
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