Circle Receives Regulatory Approval in Abu Dhabi, Expanding UAE Presence
Stablecoin issuer Circle has made a significant stride in the United Arab Emirates (UAE) by receiving regulatory approval to operate as a financial services provider at the Abu Dhabi International Financial Center. This move deepens Circle’s foray into the region, underscoring the company’s commitment to expanding its global footprint.
In an announcement on Tuesday, Circle Internet Group revealed that it had secured a financial services authorization license from the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM). This license enables Circle to act as a money service provider within the International Financial Center (IFC), marking a crucial milestone in its regional strategy.
Concurrently, Circle appointed Saeeda Jaffar as its Managing Director for Circle Middle East and Africa. Jaffar, who will also serve as Senior Vice President and Group Country Manager for the Gulf Cooperation Council at Visa, will be instrumental in developing Circle’s regional strategy and fostering partnerships. Jeremy Allaire, co-founder, chairman, and CEO of Circle, emphasized the importance of the relevant regulatory framework, stating that it “sets a high bar for transparency, risk management, and consumer protection.” Allaire believes these standards are essential for “trusted stablecoins” to support payments and finance at scale.
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Abu Dhabi’s Regulatory Landscape
The ADGM has been actively issuing financial operations licenses to several crypto companies, signaling a wave of regulatory approvals in the region. Recently, Tether’s USDt (USDT), the largest stablecoin in circulation and Circle’s biggest competitor, secured a regulatory milestone in Abu Dhabi. Similarly, Ripple’s dollar-pegged stablecoin, Ripple USD, received approval in late November.
Crypto exchange Binance also received three separate licenses from Abu Dhabi’s financial regulator, allowing it to operate its exchange, clearinghouse, and broker-dealer services. This development comes on the heels of Bybit receiving regulatory approval in the UAE in early October. The UAE’s crypto regulatory landscape is evolving rapidly, with the Central Bank of the UAE actively reviewing its cryptocurrency regulations.
UAE’s Crypto Regulatory Framework
In November, the UAE introduced rules for decentralized finance (DeFi) and the broader Web3 industry. The newly introduced Federal Law No. 6 of 2025 brings DeFi platforms, related services, and infrastructure providers within the scope of regulations if they enable payments, exchanges, lending, custody, or investment services. Local crypto lawyer Irina Heaver noted that “DeFi projects can no longer evade regulation by claiming they are just code.” Heaver previously stated that the UAE had cemented its status as a global crypto hub in 2024.
The UAE has been making significant strides in creating a favorable regulatory environment for crypto companies. In October 2024, the UAE exempted cryptocurrency transfers and conversions from Value-Added Tax (VAT). Around the same time, Dubai’s digital assets regulator announced stricter crypto marketing rules. The local free economic zone, Ras Al Khaimah Digital Assets Oasis, is also working on introducing a legal framework for decentralized autonomous organizations.
Regulators in the UAE have been enforcing the rules, with Dubai’s Virtual Assets Regulatory Authority cracking down on seven unlicensed crypto companies, issuing fines and cease-and-desist orders. As the UAE continues to evolve its regulatory landscape, it is likely that more crypto companies will seek to establish a presence in the region.
For more information on Circle’s regulatory approval in Abu Dhabi, visit https://cointelegraph.com/news/circle-adgm-license-abu-dhabi-stablecoin-uae?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
