Circle’s compliance milestone promises streamlined cross-border transactions, reduced costs, and a strengthened trust framework for Canadian users.
Circle has made history as its flagship cryptocurrency, USD Coin USDC $1.00 24h volatility: 0.0% Market cap: $60.05 B Vol. 24h: $9.90 B , becomes the first stablecoin to meet the stringent Value-Referenced Crypto Asset (VRCA) requirements introduced by the Ontario Securities Commission (OSC) and Canadian Securities Administrators (CSA). These rules aim to enhance investor protection and regulatory oversight in the country’s evolving digital asset market.
On December 4, the company announced that its Canadian subsidiary had achieved this milestone, ensuring USDC’s availability on registered crypto trading platforms in the country.
USDC Secures Its Future in Canada
In September, the CSA extended the deadline for stablecoin issuers to meet the new VRCA requirements from October to December 31, 2024. After this grace period, non-compliant stablecoins will face delisting from Canadian markets.
Circle has effectively met the challenge, securing compliance ahead of the deadline. This strategic move positions USDC as a trusted asset in Canada, offering users a blend of transparency, security, and regulatory assurance.
“Circle’s adherence to Canada’s VRCA requirements underscores our commitment to building a compliant, transparent, and accessible digital financial ecosystem,” said Dante Disparte, Chief Strategy Officer at Circle.
The company highlighted several benefits of this regulatory milestone for Canada’s financial system, including faster and more affordable cross-border payments, reduced transaction costs for businesses and individuals, and enhanced trust due to robust regulatory oversight.
A Track Record of Regulatory Leadership
Circle’s success in Canada builds on its global reputation for regulatory compliance. In July 2024, its French subsidiary became the first stablecoin issuer to align with the European Union’s Markets in Crypto-Assets (MiCA) regulations. Similarly, in June 2023, Circle’s Singaporean subsidiary received a Major Payment Institution License from the Monetary Authority of Singapore.
These achievements reinforce the company’s commitment to regulatory standards, fostering trust and adoption across international markets.
Meanwhile, USDC’s compliance to Canadian regulations comes at a time when stablecoins face heightened scrutiny from global regulators. Earlier this year, a United Nations report alleged that Tether USDT $1.00 24h volatility: 0.0% Market cap: $143.99 B Vol. 24h: $48.30 B , a key competitor to USDC, had become a preferred tool for money laundering in East and Southeast Asia.
Last month, US Federal authorities said that the digital asset has been used to facilitate money laundering activities by drug cartels in Mexico.
Earlier today, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against five individuals and four entities associated with the TGR Group, a network accused of using stablecoins to bypass international sanctions.
According to the authorities, these individuals facilitated significant sanctions on behalf of Russian elites.
“Through the TGR Group, Russian elites sought to exploit digital assets—in particular U.S. dollar-backed stablecoins—to evade US and international sanctions, further enriching themselves and the Kremlin,” said Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence.
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