Circle, the issuer of the USD Coin (USDC) stablecoin, has announced its approval under Canada’s new regulatory framework for digital assets. The move establishes Circle as the first stablecoin issuer to meet the country’s updated crypto asset listing rules.
This regulatory milestone allows USDC to enter the Canadian market under stricter compliance standards introduced by Canadian securities regulators earlier this year. Additionally, the USDC would remain valid in Canada even after the deadline for delisting non-compliant stablecoins elapses on December 31, 2024.
We are the first stablecoin issuer to meet new Canadian listing rules, facilitating $USDC's continued availability on registered crypto asset trading platforms in the Canadian market.
— Circle (@circle) December 4, 2024
Read more about this milestone.https://t.co/0MdTxgfHIM
It is worth noting that the strict regulations help to enhance consumer protection and ensure financial transparency amid rising cryptocurrency adoption. Notably, the rule entailed comprehensive inputs from the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) for Value-Referenced Crypto Assets (VRCAs).
According to Circle, this approval positions United States dollar-backed USDC as a legally compliant and secure stablecoin option for Canadian businesses and consumers. The development also aligns with Canada’s growing focus on regulating digital assets without stifling innovation.
“The availability of USDC in Canada underscores Circle’s compliance with emerging global regulations and marks another step forward in fostering a transparent and accountable digital financial ecosystem,” Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle stated.
Canadian Compliance Standards Tightened for Stablecoin Issuers
Under the new rules, stablecoin issuers operating in Canada must adhere to rigorous standards, including detailed disclosure requirements and strict oversight of financial reserves. These measures aim to mitigate risks associated with unregulated cryptocurrencie.
Industry experts view this approval as a potential turning point for Canada’s digital asset ecosystem, paving the way for broader institutional and retail adoption of stablecoins.
Circle Expands Regulatory Reach
The approval marks another significant step in Circle’s efforts to expand its regulatory footprint. The company has actively pursued compliance initiatives across multiple jurisdictions, including the United States and Europe, as part of its strategy to align with evolving global standards.
In Canada, the stablecoin sector has faced increased scrutiny following global concerns over cryptocurrency volatility and its impact on traditional financial systems. Regulators have sought to differentiate between stablecoins backed by real-world assets and more speculative digital currencies.
Circle’s USDC, a dollar-backed stablecoin, has been positioned as a low-risk alternative within the crypto market, particularly for payments and cross-border transactions.
