Last month, Circle, a stablecoin issuer, announced the receipt of a conditional registration as a Digital Asset Service Provider (DASP) or ‘Prestataire de Service sur Actifs Numériques’ (PSAN)) with the Autorité des Marchés Financiers (AMF).
When the approval was announced, Jeremy Allaire, co-founder and CEO of Circle, noted they have always taken a regulatory-first approach in advancing the use of blockchain technology and full-reserve payment stablecoins to empower businesses, promote financial inclusion, and drive internet-speed global payments.”Allaire said DASP registration is a significant milestone for the company as they establish their European presence.
France was the first major EU country to create bespoke rules for crypto. Last year, the European Union finalized MiCA or Markets in Crypto Assets regulation. The European Securities and Markets Authority (ESMA) has posted a timeline for the adoption of MiCA rules, which are expected to be fully adopted by the end of 2024.
When pursuing the approval of the AMF, Circle worked with the law firm of De Gaulle Fleurance, who noted that Circle first needed to gain approval as a payment service provider (PSP) or register as an agent of a PSP. This condition is met by obtaining a license as an electronic money institution, for which Circle has submitted an application to the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
In a public statement, De Gaulle Fleurance said that Circle aims to develop its activities in Europe by obtaining both a DASP registration and an e-money institution license, but also by bringing its products and services in line with MiCA, which makes sense. Circle, the second largest dollar-based stablecoin issuer (USDC), also offers a Euro stablecoin (EURC). EURC is currently lightly utilized with a market cap for around $58 million. Approval in France, as well as pursuing MiCA regulation, should help propel usage of Circle’s products.
The lawyers who worked on Cirlce’s approval, Anne Maréchal, Cyril Tour, Deborah David, and Henri-Nicolas Fleurance, all partners at De Gaulle Fleurance, shared the following statement on the approval.
“We are delighted to be supporting this global player in blockchain and stablecoins, both in setting up operations in France and in obtaining the regulatory approvals required to develop its activities. Circle’s desire to anchor its platform in the French legal framework reflects the excellence and richness of our ecosystem, both in terms of regulation and technology.”
While many people view stablecoins as crypto, it may be better to view stablecoins as an update to current payment rails, which is the ability to move value anywhere at a minimal cost immediately.
