Company: CRCL
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001193125-25-084832
Chunk: 223

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 223
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 custodied and reported by the EPIESPs on behalf of their customers, but the
reserves are not earmarked for those EPIESPs or their customers.

Bermuda

Circle International Bermuda Limited holds a DABA license and is regulated by the BMA. On February 13, 2025, Circle received a “no objection” notification from
the BMA in response to Circle’s material change in business application. As a result, Circle is conditionally approved to issue USYC and offer Circle Mint accounts out of Bermuda, along with other ancillary activities. The conditions to
launching these activities are standard in nature and consistent with the BMA’s regulatory framework.

Evolving regulatory landscape abroad

There are a growing number of jurisdictions where Circle is not currently licensed that are recognizing the real-world utility of payment stablecoins. As a consequence,
we are seeing new regulatory frameworks emerge to which we may one day be subject. For example, in September 2023, Dubai’s Virtual Assets Regulatory Authority enacted clear rules for the issuance of a “Fiat-Referenced Virtual Asset,”
and USDC/EURC are the first stablecoins approved as recognized crypto tokens by the Dubai Financial Services Authority. In Canada, Circle became the first stablecoin issuer to comply with the new listing requirements in the Canadian Securities
Administrators’ Value-Referenced Crypto Asset regime and is in full compliance with the Ontario Securities Commission regulations. Furthermore, the Hong Kong Monetary Authority is currently engaged in a public consultation process on a
legislative proposal to regulate issuers of stablecoins within Hong Kong. We believe the regulatory frameworks in Dubai and Hong Kong are largely consistent with Circle’s existing redemption, reserve, and transparency practices. The emergence
of regulatory frameworks tailored to stablecoins in key financial hubs evidences a growing recognition among advanced economies that digital assets like USDC and EURC may play a critical role in the future of financial markets and payment
systems.

Other regulatory requirements

Anti-money laundering and counter-terrorism regulation

As described above, we are subject to various regulations regarding AML and CFT. We maintain an AML and CFT
compliance program that includes internal policies and controls, designation of compliance officers for each of our regulated subsidiaries, ongoing employee training and monitoring programs, and annual independent reviews.

Sanctions

We are required to comply with economic and trade sanctions
administered by the relevant authorities in the jurisdictions in which we operate. For example, economic and trade sanctions programs administered by OFAC and by certain