The European Banking Authority (EBA) began direct oversight of key requirements for Circle Internet Financial Europe SAS, the EU issuer of USD Coin (USDC), on Nov. 12 after designating the token the bloc’s first significant e-money token.
The EBA made the classification Oct. 14. It had received notifications for 45 e-money tokens under the European Union’s Markets in Crypto-Assets Regulation (MiCA); USDC was the first to receive the significant designation.
The EBA’s remit includes the issuer’s own funds, reserve assets and liquidity requirements, as well as recovery and redemption plans. France’s ACPR retains duties covering governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest.
Circle warned in a Nov. 4 Securities and Exchange Commission filing that the classification could require its EU issuer to hold more capital or liquidity and could raise compliance costs. The company said it was evaluating the impact.
MiCA splits supervision of significant e-money tokens between the EBA and the national authority, with each regulator responsible for specified areas.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to [email protected].
