Circle exec expects ‘huge shift’ in EU market post-MiCA

Patrick Hansen, Circle’s director of European strategy, anticipates significant developments in the EU’s crypto and stablecoin markets by late 2025.

Speaking at the European Blockchain Convention in Barcelona, Hansen highlighted expectations for enhancements in the crypto market structure across the European Union. He indicated that the bloc’s Markets in Crypto-Assets Regulation (MiCA) would be a key driver of this progress during a panel discussion titled “What is Going on Behind the Scenes – Post MiCA?”

MiCA represents a shift in the EU’s regulatory approach to crypto, offering comprehensive guidelines for governments, institutions, and investors regarding digital assets. It establishes requirements for crypto exchanges and sets thresholds for stablecoin reserves. Notably, Circle’s USDC was among the first stablecoins to benefit from this new framework, securing MiCA’s inaugural stablecoin license.

Hansen revealed that achieving compliance with MiCA and obtaining regulatory approval was a distinct process compared to other regions. For example, the issuer of USDC engaged with regulators for up to 24 months before securing approval.

Circle has also applied for an Electronic Money Institution license in France, which has been accepted by the Autorité de Contrôle Prudentiel et de Résolution, the French banking authority.

According to Hansen, Circle’s euro-pegged stablecoin, EURC, has experienced a remarkable increase of 60-70% since July when it received approval, now boasting a market cap of over 67 million euros.

Hansen anticipates further growth for EURC and other stablecoins within the EU, driven by the regulations set forth by MiCA.

“We believe that in the European Union, for our euro stablecoin and for euro stablecoins in general, we can expect significant growth in the next 12 months,” stated Patrick Hansen, Circle’s senior director of strategy and policy in Europe.

As the operator of USDC strengthened its presence in Europe, CEO Jeremy Allaire outlined plans for an initial public offering (IPO) in the U.S. To support this initiative, Circle has relocated its global headquarters to the heart of New York City, specifically to One World Trade Center, where it joins other major players on Wall Street, including Goldman Sachs. This move is part of Circle’s strategic roadmap as it prepares for its public offering.