USDC Gains Regulatory Approval in the EEA, Marking a Significant Milestone for Circle and Binance

Binance CEO Richard Teng announced USDC's new status in the European Economic Area (EEA) region in a prior post on X. He stated quite clearly that the USD

Binance has confirmed that it will continue to fully support the stablecoin USD Coin (USDC), which is pegged to the United States Dollar, throughout the European Economic Area (EEA).

USDC Receives Regulatory Approval in the EEA, a Major Win for Circle and Binance

Binance CEO Richard Teng announced USDC’s new status in the European Economic Area (EEA) region in a recent post on Medium. He explicitly stated that the USD-pegged stablecoin is now regulated in the geographical area.

In other words, USDC has now complied with the Markets in Crypto Asset (MiCA) framework that is currently active in the European Union. As a result, it will be available for trading on the leading cryptocurrency exchange for people who live in the EEA.

This comes after Circle managed to become the first global stablecoin issuer to obtain an Electronic Money Institution (EMI) license in the European Economic Area (EEA). The EMI license allows institutions to issue crypto tokens that are pegged to either the dollar or the euro, including stablecoins, under the new MiCA legislation.

USDC’s new status as a MiCA-compliant e-money token (EMT) has brought a positive atmosphere to the crypto industry. According to Binance’s CEO, we can expect many more MiCA-compliant EMTs to become available soon.

In the meantime, this new development adds to Circle’s expansion across multiple regions, and it puts the issuer ahead of its closest competitor, Tether. We still don’t know for sure whether the USDT issuer will also receive an EMI license.

Tether Struggles with MiCA Compliance but Expands Utility with New Partnerships

It seems unlikely that Tether will be able to obtain a license from MiCA, especially since the company decided that the MiCA regulatory framework is harmful to the stablecoin industry, as reported by Coingape.

In the meantime, Tether recently decided to stop offering USDT on the Algorand and EOS public blockchains. Before making this decision, the stablecoin issuer took into account the community’s interest in the stablecoin, its maintainability, and use on both blockchains.

According to Tether, the company is always concerned about the security, utility, and long-term viability of its token on any blockchain where it can be deployed. It seems that neither EOS nor Algorand met the requirements set for them.

After quickly removing USDC from those blockchains, a major partnership was announced shortly after, and it was with UQUID. This partnership will allow Filipinos to pay their Social Security System (SSS) contributions using USDT on the TON blockchain.

So while Tether may not have an EMI license, it seems to have other positive developments lined up.

Photo: Microsoft Bing

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