USDC Becomes First Stablecoin to Meet New Canadian Crypto Rules

USDC has become the first stablecoin to comply with Canada's newly established digital asset regulations, as announced by Circle this week. This compliance ensures that USDC, designed to hold a 1:1 value with the US dollar, can now be traded on Canadian crypto exchanges. The new regulations mandate the removal of non-compliant stablecoins by December 31st.

Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, highlights this achievement as a testament to the company’s regulatory dedication.

"The Canadian Securities Administrators’ initiative on establishing a digital asset regulatory framework enhances the trustworthiness of digital markets and solidifies reliance on USDC within Canada’s expanding digital landscape," he remarked.

Coinciding with this announcement, Circle has initiated a round of layoffs, reducing less than 6% of its workforce, as reported by Bloomberg. A Circle spokesperson indicated the cutbacks are standard practice, reflecting a strategic review of investments and expenditures. "We consistently evaluate our teams and infrastructure to pinpoint growth areas while making slight reductions elsewhere," the spokesperson said.

Earlier in the summer, USDC, along with Circle's euro-pegged stablecoin EURC, also secured compliance with the European Union's Markets in Crypto Assets (MiCA) regulations. MiCA, set for implementation in December 2024, will impose rules on the oversight, consumer protection, and environmental impact of crypto assets.

It targets financial misconduct such as market manipulation, and money laundering while placing stablecoin issuers under the supervision of the European Banking Authority with sufficient liquid reserves as a requirement.