USDC issuer Circle has rolled out a new compliance tool designed to help businesses grow on-chain.
The Compliance Engine will automatically integrate with Circle’s programmable smart wallets designed for developers, said Jeremy Allaire, the company’s chief executive officer.
“We have built tremendous capabilities in this area over the last decade, and we are now leveraging them to expose them to developers and operations teams building blockchain financial applications.
This includes our new Transaction Screening tool to detect risky and suspicious transactions, our Transaction Monitoring tool to help identify potentially high-risk behavior, and our new Travel Rule service, which helps businesses maintain compliance with global travel rule requirements for large onchain transactions.”
This summer, Circle’s USDC and euro-pegged stablecoin EURC achieved compliance with the European Union’s Markets in Crypto Assets (MiCA) regulation.
MiCA is a future European legislation that will provide rules covering supervision, consumer protection and environmental safeguards for crypto assets.
The law includes measures to reduce financial crimes, including market manipulation, money laundering and terrorist financing. It places stablecoin issuers under the authority of the European Banking Authority while requiring them to hold sufficient liquidity reserves. It is scheduled to come into force in December 2024.
USDC aims to maintain a 1:1 ratio against the US dollar and is the second largest stablecoin with a market cap of $36.06 billion at the time of writing.
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