If you hold USDC, take note of the EU regulatory handover on November 12: reserve assets, liquidity, own funds, and recovery and redemption plans will come under the direct supervision of the European Banking Authority (EBA).
In its October 14 announcement, the EBA designated USDC issued in the EU by Circle’s French entity as the first significant e-money token under MiCA. France’s regulator, the ACPR, remains responsible for areas such as corporate governance, outsourcing, and conflicts of interest, with the two authorities sharing supervisory responsibilities. Circle’s latest quarterly disclosures also confirmed the handover date and division of responsibilities.
The detail most relevant to holders is that supervision covers reserves and redemption arrangements. However, this does not mean that all USDC worldwide is covered by the same regulatory protections. The announcement clearly distinguishes between the EU and US issuing entities.
The announcement does not require ordinary holders to exchange their tokens or migrate their wallets. If you receive messages asking for your recovery phrase or telling you to make a transfer for verification under the pretext of this regulatory upgrade, do not comply.
Stablecoins still carry depegging, issuer, and redemption risks. Regulatory classification is not a guarantee of principal.
Binance Wallet invitation code: MOLLY666
In its October 14 announcement, the EBA designated USDC issued in the EU by Circle’s French entity as the first significant e-money token under MiCA. France’s regulator, the ACPR, remains responsible for areas such as corporate governance, outsourcing, and conflicts of interest, with the two authorities sharing supervisory responsibilities. Circle’s latest quarterly disclosures also confirmed the handover date and division of responsibilities.
The detail most relevant to holders is that supervision covers reserves and redemption arrangements. However, this does not mean that all USDC worldwide is covered by the same regulatory protections. The announcement clearly distinguishes between the EU and US issuing entities.
The announcement does not require ordinary holders to exchange their tokens or migrate their wallets. If you receive messages asking for your recovery phrase or telling you to make a transfer for verification under the pretext of this regulatory upgrade, do not comply.
Stablecoins still carry depegging, issuer, and redemption risks. Regulatory classification is not a guarantee of principal.
Binance Wallet invitation code: MOLLY666
