Circle announced that USDC is the first stablecoin to comply with Canada’s new digital asset regulations. The new regulations envisage the delisting of incompatible stablecoins as of December 31.
Canadian Regulations and USDC Compliance
While USDC aims to remain pegged 1:1 to the US dollar, it will continue to be traded on crypto exchanges in the Canadian market, thanks to Circle’s compliance with the new laws. In Circle’s new statement, it was stated that USDC can be used safely in the Canadian ecosystem.
Stablecoins have become a priority area for regulations around the world, and thanks to the steps taken at this point, USDC can continue its activities in regions where regulations are put into effect.
European Union Compatibility
This summer, it was announced that USDC and EURC had aligned with the European Union’s MiCA regulations. MiCA is a new law that aims to ensure the supervision of crypto assets, investor protection and environmental assurance.
“The Canadian Securities Administrators’ provision of a digital asset regulatory framework ensures continued confidence in USDC while strengthening the integrity of digital asset markets.” -Dante Disparte, Circle’s global head of policy and chief strategy officer.
MiCA regulations aim to reduce financial crime, prevent market manipulation, prevent money laundering and the financing of terrorism. It would also bring stablecoin issuers under the European Banking Authority and require them to hold sufficient liquid reserves. This law is planned to come into force in December 2024.
USDC’s compliance in Canada and the European Union demonstrates Circle’s commitment to global market strategy and regulatory compliance. These developments can contribute to greater trust and stability in digital asset markets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
