Circle, the issuer of the USDC stablecoin, announced on Wednesday that it has pledged to comply with Canada's tightened regulations, allowing its $40 billion stablecoin to remain listed on exchanges. According to the company, "USDC has become the first stablecoin to reach this milestone." Circle is working closely with Canadian authorities to develop a regulated market for global stablecoins, which could bring significant efficiency gains to Canada's cross-border, retail, and institutional settlement systems. This announcement comes as crypto companies in Canada face increasing pressure to comply with stricter rules by the end of the year. The Canadian Securities Administrators introduced tighter regulations for digital assets last year, including guidelines for exchanges offering "Value-Referenced Crypto Assets" (VRCAs), which include stablecoins.
In anticipation of these stricter rules, Binance has exited the Canadian market, while Coinbase and Crypto.com have announced plans to delist certain tokens, including Tether's USDT, from their platforms. The Ontario Securities Commission has listed Circle Internet Financial as the only issuer under the VRCA rules on its website. The deadline for exchanges to comply with stablecoin listing standards is December 31, 2024.