Circle Secures Abu Dhabi Approval Amid Global Expansion
Key Notes
- USDC parent company Circle can now operate as a money services provider in Abu Dhabi.
- The company is not yet fully licensed to operate but is considered compliant with existing regulations.
- Its expansion in the UAE also features an earlier approval from the Dubai Financial Services Authority (DFSA).
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Circle Internet Financial, the USDC stablecoin issuer, has received the in-principle approval from Abu Dhabi regulators. With the approval from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM), the firm can now serve as a money services provider in the region.
Circle Brings New Capabilities to Investors in Abu Dhabi
Per the announcement, having an in-principle approval does not mean that Circle has bagged a full regulatory approval from ADGM. Instead, it shows that the stablecoin issuer is compliant and has met all the necessary requirements of the agency. As a result, it can conduct financial businesses in the region. The full approval may be a few weeks or months away.
In light of the recent development, Jeremy Allaire, Co-founder and CEO of Circle, noted that such approvals mark a way for the UAE to pave the way for responsible innovators interested in building the internet financial system. He claimed that the in-principle approval from ADGM advances the firm’s strategy to establish deep roots in specific markets.
Circle is keen on markets embracing the onchain economy and those creating new pathways for investment and innovation in the region. Little wonder that it became the first stablecoin issuer to comply with the EU’s Markets in Crypto Assets (MiCA) regulation after securing an Electronic Money Institution (EMI) license from France’s banking regulator (ACPR).
The milestone reflects the company’s enduring commitment to global stablecoin oversight. The goal is to strengthen trust, compliance, and adoption worldwide without compromising the resilient foundation for the internet financial system.
Circle Inks an Expansion Deal With ADGM
About a month ago, Circle incorporated a legal entity within the ADGM to expand its global reach within the Middle East and Africa. As Circle stated at the time, its mission centered around “enhancing financial inclusion and accessibility by deploying a stablecoin infrastructure.”
The said stablecoin infrastructure is focused on addressing the existing gaps in financial services.
It would achieve this without compromising on existing payment systems, but rather complementing them. It hopes to do this especially in high-traffic remittance corridors like those that traverse the Middle East. During the Abu Dhabi Finance Week, Jeremy Allaire, Co-founder and CEO of Circle, stated that,
“By incorporating in the ADGM and collaborating with industry leaders like LuLuFin, we strengthen our commitment to advancing the digital asset economy in the region.”
Other Developments in Circle’s Ecosystem
In February, Circle received approval from the Dubai Financial Services Authority (DFSA) to offer USDC and EURC as regulated digital assets in the Dubai International Financial Centre (DIFC). This move made both assets the first stablecoins officially recognized under Dubai’s crypto regulatory regime.
Financial institutions licensed to operate within the DIFC can integrate stablecoins into their platforms. Once achieved, the tokens can be utilized for cross-border payments, asset management, treasury solutions, and other financial applications.
Circle is also partnering with Hub71, Abu Dhabi’s global tech ecosystem, to strengthen innovation in digital assets.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
