The first significant stablecoin to adhere to Canadian laws governing digital assets is Circle’s USDC.
Amidst continuous claims of layoffs inside the company, Circle has achieved a critical milestone by being the first stablecoin issuer to meet Canada’s new listing standards for its USD Coin (USDC).
Circle CEO Jeremy Allaire declared in a post on X on December 4 that USDC is the first of the leading dollar-backed stablecoins to adhere to Canada’s new rules for digital assets.
Value-Referenced Crypto Assets (VRCA) are governed by regulations established by the Canadian Securities Administrators (CSA) and the Ontario Securities Commission (OSC).
Because of the compliance, USDC will remain accessible on Canadian-registered cryptocurrency exchanges and trading platforms. Stablecoins that do not comply with the new VRCA requirements will be delisted, and these platforms must comply by December 31.
Several well-known cryptocurrency companies left the Canadian market last year, citing regulatory issues, including Gemini, Binance, and Paxos. These changes came after the Canadian government tightened regulations governing the cryptocurrency sector.
Nonetheless, USDC’s sustained presence in Canada shows the company’s dedication to international regulatory norms, according to Dante Disparte, Head of Global Policy at Circle.
He underlined that Canada’s progressive regulatory approach supports the use of USDC in the nation’s expanding ecosystem while enhancing the integrity of digital asset markets.
Circle’s Reduction of workforce
According to Bloomberg, Circle’s regulatory success comes when the company reportedly cut 6% of its workers.
According to reports, a Circle representative stated that the layoffs were a part of regular operational assessments to reduce costs and maximize expenditures. The representative said that while the company modestly reduces some positions in other sectors, it still invests in important teams and infrastructure.
The business is still committed to growing geographically, especially in fields like artificial intelligence.
These actions occur as USDC maintains its position as the second-largest stablecoin in the cryptocurrency market. Based on CryptoSlate’s data, the digital asset’s $40 billion supply accounts for 20% of the market.