Circle has achieved a significant milestone by becoming the first stablecoin issuer to meet Canada’s new listing requirements for its USD Coin (USDC). This achievement comes at a time when the company is facing reports of layoffs.
In a recent announcement on X, Circle CEO Jeremy Allaire revealed that USDC is now compliant with Canada’s updated regulations for digital assets, specifically the rules set by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) regarding Value-Referenced Crypto Assets (VRCA).
This compliance ensures that USDC will continue to be available on registered crypto exchanges and trading platforms in Canada. Platforms must adhere to the new VRCA standards by December 31, with non-compliant stablecoins facing delisting.
While several prominent crypto firms, such as Gemini, Binance, and Paxos, have exited the Canadian market due to regulatory challenges, Circle’s Head of Global Policy, Dante Disparte, emphasized the company’s commitment to global regulatory standards. He noted that Canada’s progressive regulatory approach enhances market integrity and supports USDC’s use within the country’s growing crypto ecosystem.
However, this regulatory success for Circle comes amidst reports of a 6% workforce reduction within the company, as reported by Bloomberg. A Circle spokesperson clarified that the layoffs were part of routine operational reviews aimed at optimizing investments and managing expenses. The spokesperson also mentioned that the company remains focused on investing in critical teams and infrastructure while making slight adjustments to certain roles.
Despite these workforce reductions, Circle is continuing to expand its geographic footprint, particularly in areas like Artificial Intelligence. This strategic focus aligns with USDC’s position as the second-largest stablecoin in the market, controlling 20% of the market with a supply of $40 billion, according to CryptoSlate’s data.
In summary, Circle’s efforts to balance regulatory compliance in Canada with operational efficiency through staff adjustments showcase the company’s commitment to navigating the evolving landscape of the crypto industry.