- Circle received approval from the OSC and the CSA after meeting the VRCA requirements
- In July, Circle became the first stablecoin issuer to receive a license under the EU’s MiCA’s regulations
Circle has become the first stablecoin issuer to meet Canada’s new regulatory requirements for stablecoins.
In an announcement from Circle, which issues USDC, a US dollar-dominated stablecoin, it said it had received approval from the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA).
By meeting Canada’s Value-Referenced Crypto Asset (VRCAs) requirements, Circle’s USDC can be offered on registered Canadian crypto trading platforms that meet the standards.
Jeremy Allaire, co-founder and CEO of Circle, posted the announcement on X, saying:
“Circle becomes the first stablecoin issuer to comply with the new listing and markets rules for the Canadian crypto market. USDC is the first and only major dollar stablecoin that is compliant with new regulations in Canada.”
Circle becomes the first stablecoin issuer to comply with the new listing and markets rules for the Canadian crypto market. USDC is the first and only major dollar stablecoin that is compliant with new regulations in Canada. https://t.co/ykQUzT3dE3
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) December 4, 2024
Circle received approval ahead of the CSA’s deadline cutoff for delisting non-compliant stablecoins on December 31, 2024.
Speaking about Circle’s achievement, Dante Disparte, chief strategy officer and head of global policy at Circle, said “the availability of USDC in Canada underscores Circle’s compliance with emerging global regulations and marks another step forward in fostering a transparent and accountable digital financial ecosystem,” adding:
“The Canadian Securities Administrators’ proactive approach in providing a digital asset regulatory framework reinforces the integrity of digital asset markets, while ensuring continued reliance on USDC across Canada’s burgeoning ecosystem.”
Circle’s regulatory environment
Elsewhere, Circle is regulated by the US Bank Secrecy Act and holds money transmitter licenses in several US states.
In July, the stablecoin issuer became the first to gain regulatory approval under the European Union’s Markets in Crypto-Assets (MiCA) regulations. The approval grants Circle the ability to issue its USDC and Euro Coin (EURC) stablecoins across the EU.
Additionally, in June 2023, Circle received a Major Payment Institution (MPI) license for digital payment token services in Singapore.
Issued by the Monetary Authority of Singapore, the license enables Circle to offer digital payment token services, cross-border money transfer services, and domestic money transfer services in Singapore.
USDC has a market capitalization worth $40.6 billion, second only to Tether’s USDT, valued at more than $135.8 billion.
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