In a significant development, Circle has become the first issuer to meet Canada’s freshly implemented regulations for stablecoin listings.
The Canadian Securities Administrators (CSA) have stepped up the game by rolling out tougher rules designed to regulate digital assets, with a particular focus on how exchanges list stablecoins.
Circle’s Compliance Achievement
Circle proudly announced that its stablecoin, USDC—which boasts a market valuation of $40 billion—has secured compliance with these new standards.
The company further revealed that it is actively engaging with Canadian regulators to help refine a structured market that could improve the efficiency of cross-border transactions for both retail and institutional investors within Canada.
Impact of New Regulations
This news comes at a critical juncture as crypto operations in Canada grapple with the mounting urgency to comply with these enhanced regulations, set to take effect by year-end.
The CSA began this initiative last year, creating guidelines for exchanges that want to list what’s known as “Value-Referenced Crypto Assets” (VRCA), a category that includes stablecoins.
Consequently, some exchanges, such as Binance, have pulled out of the Canadian scene, while others like Coinbase and Crypto.com are reconsidering their token listings, removing assets such as Tether’s USDT.
Current Market Landscape
Importantly, the Ontario Securities Commission, a pivotal player within the CSA, has recognized Circle Internet Financial as the only issuer currently meeting the new VRCA compliance standards.
Crypto exchanges have until December 31, 2024, to adhere to these stablecoin listing requirements.
Source: Coindesk
