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Highlights
- Circle's USDC is the first stablecoin to meet Canada’s new VRCA guidelines, ensuring its continued presence on compliant platforms.
- Circle's USDC also meets the EU's MiCA framework and Singapore's MAS license, solidifying its global regulatory compliance.
- With OSC and CSA approval, USDC remains a trusted, fiat-backed stablecoin for Canadian users after the 2024 compliance deadline.
USDC issuer Circle has become the first stablecoin issuer to meet Canada’s new regulatory requirements for stablecoins. On December 4, 2024, Circle announced that it had received approval from the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA).
This approval allows Circle’s U.S. dollar-backed stablecoin, USDC, to remain available on registered Canadian crypto platforms that comply with the newly introduced Value-Referenced Crypto Asset (VRCA) guidelines.
Circle Meets Canadian Stablecoin Regulation Standards
Circle’s USDC is the first stablecoin to fully meet the new VRCA regulations of the CSA. This compliance will allow USDC to be offered on Canadian platforms that satisfy the new standards.
With the Canadian government seeking better definition of the laws regarding digital assets, Circle’s actions demonstrate its willingness to follow these guidelines. The approval lets USDC continue to be an active participant in the Canadian crypto market and promote trust and transparency within the market.
”The launch of USDC in Canada is a testament to Circle’s adherence to the emerging global regulatory framework and is another significant development towards the enhancement of transparency and accountability of the digital financial system,” said Dante Disparte, Chief Strategy Officer at the stablecoin issuer.
He insisted that Circle is a company that aims at upholding high standards of regulation even as it expands its operations across the globe.
USDC’s Ongoing Presence in the Canadian Market
Due to this approval, the Canadian crypto exchange platforms that are in compliance with the VRCA rules may still provide USDC after the enactment of the regulation for non-compliant stablecoins by December 31, 2024.
The stablecoin issuer’s focus on compliance strengthens USDCs position as a compliant fiat backed stablecoin in the Canadian market. The fact that the company is able to work within the complex regulatory frameworks means that Canadian users can trust USDC for their transactions.
Circle CEO Jeremy Allaire also shared his thoughts on the accomplishment saying that the company’s compliance with Canadian regulations makes USDC the most regulated stablecoin in Canada.
”We are still in discussions with the Canadian authorities to pursue a regulated market for the global stablecoins which can be useful in improving the efficiency of cross border transfers,” said Allaire.
Circle’s Global Expansion and Regulatory Engagement
Apart from Canada, the stablecoin issuer has objserved growth in several other markets across the globe. The company is compliant with the US Bank Secrecy Act and is also licensed as a money transmitter in many states of the US.
In July 2024, Circle’s French subsidiary became the world’s first stablecoin issuer to be compliant with the European Union’s Markets in Crypto-Assets (MiCA). Furthermore, the Company’s Singaporean subsidiary obtained Major Payment Institution License from the Monetary Authority of Singapore in 2023.
At the same time, Robinhood Crypto EU integrated Circle’s USDC into the offering, thus providing its European customers with an opportunity to engage with the regulated stablecoin. Thus, the integration opens up trading and holding of USDC for 24 million registered Robinhood users across Europe.
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