- Category
- Defining Matters
- Date
- July 12, 2024
- Title
-
Kramer Levin Advises Circle Internet Financial Europe SAS in Relation to the Issuance of MiCAR-Compliant Stablecoins
The Paris office of Kramer Levin has advised Circle Internet Financial Europe SAS (“Circle France”), the French subsidiary of the Circle group, in relation to its application as an electronic money institution authorized to issue electronic money tokens under French and European law.
On July 1, 2024, the French banking supervisor (ACPR) confirmed the electronic money institution license of Circle France. Pursuant to that license, Circle France will be allowed to issue USDC and EURC, two stablecoins pegged respectively to the U.S. dollar and the euro, throughout the European Union and European Economic Area.
These stablecoin issuances will be made in compliance with Regulation (EU) 2023/1114 of 31 May 2023 on markets in crypto-assets (“MiCAR”), which regulates the issuance of electronic money tokens (i.e. crypto-assets that maintain a stable value by referencing an official currency). Since the provisions of MiCAR on electronic money tokens became applicable on June 30, 2024, USDC and EURC will become one of the first MiCAR-compliant stablecoins.
Kramer Levin also advised Circle France in connection with the preparation of the MICAR white papers that describe the characteristics of USDC and EURC and the rights associated with their ownership.
