Circle announced this week that USDC is the first stablecoin to comply with Canada’s new digital asset regulations.
Canada’s new regulations call for the removal of non-compliant stablecoins after December 31.
Circle’s compliance means USDC, which aims to maintain a 1:1 peg to the U.S. dollar, can trade on crypto exchanges in the Canadian market, according to a new press release.
Dante Disparte, Chief Strategy Officer and head of global policy at Circle, said the new development underlines the stablecoin issuer’s regulatory efforts.
“The Canadian Securities Administrators’ proactive approach to providing a regulatory framework for digital assets strengthens the integrity of digital asset markets while ensuring continued dependence on USDC in Canada’s rapidly growing ecosystem.”
The announcement comes as Circle launched a new wave of layoffs, Bloomberg reports. A company spokesperson told the press that the downsizing was routine and represented less than 6% of the company’s workforce.
“Circle regularly reviews our investments and expenses. This includes investing in teams and operational infrastructure to grow, while marginally reducing expenses and some functions in other parts of the business.”
This summer, USDC and Circle’s euro-pegged stablecoin EURC also achieved compliance with the European Union’s Markets in Crypto Assets (MiCA) regulations.
MiCA is the upcoming EU legislation that will provide rules regarding the supervision, consumer protection and environmental safeguards of crypto assets.
The law includes measures aimed at curbing financial crimes, including market manipulation, money laundering and terrorist financing, and places stablecoin issuers under the European Banking Authority while requiring them to maintain sufficient liquid reserves.
It is also scheduled to enter into force in December 2024.
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