Circle’s EU USD Coin (USDC) Faces a 60% Reserve Deposit Floor

Circle’s French electronic money unit will face a 60% reserve-deposit floor after the European Banking Authority (EBA) classified USD Coin (USDC) as a significant e-money token, with direct EBA oversight starting Nov. 12. The Oct. 14 ruling made USDC the first token among 45 notified as e-money under the European Union’s Markets in Crypto-Assets Regulation (MiCA) to receive significant status. Circle Internet Financial Europe SAS had begun issuing USDC in the EU in July 2024 under an electronic money license. The decision adds regulatory obligations to an existing operation; it does not mark the start of Circle’s EU issuance. Circle Internet Financial, LLC issues USDC outside the European Economic Area (EEA). Starting Nov.

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