Circle Announces USDC as Canada's First Regulated Stablecoin
Circle has become the first stablecoin issuer in Canada to comply with new regulations, allowing its USDC to remain on exchanges amid tightening rules.
Key Insights
- Circle is the first issuer compliant with Canada's updated stablecoin listing regulations.
- The Canadian Securities Administrators (CSA) initiated stricter rules last year aimed at managing digital assets, especially for stablecoins.
Stablecoin issuer Circle announced on Wednesday that it has aligned with Canada's tighter regulations, ensuring its $40 billion USDC stablecoin continues trading on exchanges. "USDC is the first stablecoin to achieve this milestone," the company stated. Circle has engaged with Canadian officials to develop a regulated market, promising efficiency benefits for Canadian cross-border payments, retail, and institutional settlements.
Pressure increases on crypto firms in Canada as the deadline to adhere to these new rules approaches.
The CSA began implementing enhanced regulations for digital assets last year, which include guidelines for listing so-called Value-Referenced Crypto Assets (VRCA), encompassing stablecoins. Recently, exchanges like Binance have exited the Canadian market, while Coinbase and Crypto.com announced they would delist stablecoins like Tether's USDT.
The Ontario Securities Commission has recognized Circle Internet Financial as a compliant issuer under the VRCA regulations, with an imminent compliance deadline set for December 31, 2024.
