Circle’s USDC Becomes First Stablecoin to Comply with Canadian VRCA Regulations
Circle's USD Coin #USDC becomes the first stablecoin to meet the Value-Referenced Crypto Asset (VRCA) requirements set by the Ontario Securities Commission (OSC) and Canadian Securities Administrators (CSA), enhancing investor protection and regulatory oversight in Canada's digital asset market.
On December 4, Circle announced that its Canadian subsidiary achieved compliance, ensuring USDC’s availability on registered crypto trading platforms in Canada.
USDC Secures Its Future in Canada
The CSA extended the deadline for stablecoin issuers to comply with VRCA requirements from October to December 31, 2024. Non-compliant stablecoins will face delisting after this grace period.
Circle met the challenge ahead of the deadline, positioning USDC as a trusted asset in Canada with transparency, security, and regulatory assurance. Dante Disparte, Chief Strategy Officer at Circle, stated that adherence to VRCA requirements reflects their commitment to a compliant digital financial ecosystem.
Benefits of this milestone include faster cross-border payments, reduced transaction costs, and enhanced trust due to 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 EU’s Markets in Crypto-Assets (MiCA) regulations. 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 internationally.
USDC’s compliance comes amid increased scrutiny of stablecoins. A United Nations report earlier this year alleged that Tether #USDT, a competitor to USDC, was used for money laundering in East and Southeast Asia. Recently, US federal authorities linked digital assets to money laundering by drug cartels in Mexico.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against individuals and entities associated with the TGR Group, which allegedly used stablecoins to bypass international sanctions, benefiting Russian elites.
“Through the TGR Group, Russian elites sought to exploit digital assets—particularly U.S. dollar-backed stablecoins—to evade US and international sanctions,” stated Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence.