- The issuer of the EURC stablecoin, backed by the euro, Circle has appealed to the EU leadership to lower the threshold for entering the market.
- With the adoption of new rules for regulating the crypto industry in the EU (MiCA), many exchanges and stablecoins have been forced to leave the European market.
Stablecoin company Circle has called on the European Commission to lower the threshold for organizations to engage with cryptoasset service providers. The appeal comes in response to the EU’s proposed market integration package, which Circle believes continues to restrict access for cryptocurrency service providers and slows the growth of euro-backed tokens.
In his statement The USDC issuer called the package «an important step towards a digitally enabled financial system» and proposed changes to improve market access and settlement of digital assets in Europe.
One of Circle’s main requests concerned the market capitalization threshold pegged to electronic money tokens (EMTs) used for settlements. The company’s position is that limiting the use of electronic money for settlements to significant tokens could prevent euro-pegged stablecoins from entering the market. The company has a direct interest in resolving this issue, as it proposes the EURC. stablecoin, backed by the euro and compliant with MiCA rules in Europe.
Circle also petitioned the Commission to expand access under the DLT (distributed ledger technology) pilot program. The company stated that only credit institutions and central securities depositories currently have access to cash accounts, and proposed allowing cryptoasset service providers to participate in the program.
All these changes, according to Circle representatives, will bring greater clarity to participants in the European crypto market.
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