Circle has been slowly capturing the stablecoin licenses around the world. It has already managed to get one in taiwan. There is also one in process in china and now they have got one license in the France. This development of the Cicle inc goes to show the stablecoins being adopted in the times of regulation.
Most of the world regulatories are being open towards the stablecoins. As these coins are making it through the regulation, they would be competing with the CBDC. And which also means that they tend to be the glue between the crypto market and the govt before it gets converted into the FIAT.
Let's talk about the Circle inc. journey towards acquiring the DASP licenses around the world.
What is French Financial Markets Authority (AMF)?
Every nation has the regulation, policies and the legislations that deal with the financial movements within it's soil along with the international business that inted to work on their transactions within the banks of the nation and the banks abroad. So all those transactions which are larger in number get watched over and also regulated through the authority bodies. In case of the France, they have the AMF aka Autorité des Marchés Financiers (AMF).
In case of crypto they are now active to regulate it through license and also through monitoring of the transactions. And they wish to keep an eye on the larger deposits, withdrawals and also the international transfer of the funds. Which would make license system applicable to exchanges, stablecoin and also variety of other crypto services providers.
Circle inc gets Digital Asset Service Provider (DASP)
Circle inc is operating the stablecoin named USDC. They are available on most of the dominating chains like ethereum, tron, avalanche, polkadot and many others. Which also means that in near future Circle would be wrapping the digital currency of the foreign currency too. So don't be surprised if the USDC version of the euro is designed by them as a connecting glue of the forex market.
In short this license is going to allow them for the market transactions of the USDC and the EURC would be done in the france if the license was meant to be approved. And now they have got the license now and they are allowed to do so. They have now to apply in each nation in the European union and so such updates would become too common.
European Regulatory Open to Stablecoins
Circle inc and Tether are not the only one, there are many other stablecoin players in the blockchain world. And any blockchain is out there in a venture capitalist funded and those who have the presence in the market, they would now need the licenses and only then they would be allowed to trade in exchanges and the marketplace.
It is good to see that EU is open for the Digital Euro and also the external stablecoins maintained by the private companies are also there. Which goes to show that Europe is more open and also there would be more incomng companies with the licenses which would bring competition which is healthy for the crypto market.
Circle inc getting the DASP license would allow them to easily work with the USDC and EURC in the france which would be a good start for their presence in the exchanges. As long as they are compliant and also have treasury backed presence, it'd serve them well in the crypto market.