Circle Will Stop Providing Support For Consumer Accounts Soon

Popular stablecoin issuer, Circle, has reportedly informed its users about its intention to discontinue support for specific accounts. In a recent announcement, company representatives stated that Circle would no longer provide assistance to consumer-only accounts as part of its strategic re-evaluation.

Leaving the US behind

This development follows comments made by Circle CEO, Jeremy Allaire, who said that the main focus for the company, especially in the long term, extends beyond the United States. He revealed that a significant portion of business for Circle, approximately 70% of USDC stablecoin adoption in fact, originates via non-US markets.

Notably, Circle recently obtained a Major Payment Institution (MPI) license, which was issued by the Monetary Authority of Singapore (MAS). This license allows Circle Singapore to offer digital payment token services in that country, marking a significant advancement for the crypto industry in Asia.

More than meets the eye

The company will officially terminate the wiring and mining features and close user accounts on November 30th, 2023. The specific reasons for this action were not disclosed by Circle, but they emphasized that it aligns with their terms and agreements, as stated in their applicable legal agreement.

In their ongoing global expansion efforts, Circle also announced plans to establish its European headquarters in Paris. This decision is influenced by the favorable stance on cryptocurrencies which France has adopted alongside its aspiration to become a prominent hub for Web3 technologies.

Notably however, experts believe that there is a bigger picture at play here, namely that many crypto-oriented companies are leaving the United States behind. This should come as no surprise, as regulators like the SEC have certainly not made it easy for these companies to succeed in the country. Still, there is a light at the end of the tunnel with the recent Bitcoin Spot ETF applications, but only time will tell where that road shall lead.