Stablecoin issuer Circle has gained regulatory approval to act as a financial service provider in the Abu Dhabi International Financial Center, furthering its expansion into the United Arab Emirates.
In an announcement Tuesday, Circle Internet Group revealed it has obtained a Financial Services Permission license from the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM), the International Financial Centre of Abu Dhabi. This enables the stablecoin issuer to function as a Money Services Provider in the IFC.
The issuer of USDC also appointed Saeeda Jaffar as the managing director for Circle Middle East and Africa. Jaffar, who also holds the position of senior vice president and group country manager for the Gulf Operation Council at Visa, will focus on developing the stablecoin issuer’s regional strategy and partnerships.
Circle co-founder, chairman, and CEO Jeremy Allaire remarked that the relevant regulatory environment “sets a high bar for transparency, risk management, and consumer protection,” stating that such standards are necessary for “trusted stablecoins” to facilitate payments and finance on a large scale.
Related: Abu Dhabi Investment Council triples stake in Bitcoin ETF in Q3: Report
Abu Dhabi awards a wave of licenses
The ADGM has recently issued licenses for financial operations to numerous crypto companies. Earlier this week, Tether’s USDt (USDT)—the largest stablecoin by circulation and Circle’s main competitor—reached a regulatory milestone in Abu Dhabi’s international financial center, as did Ripple’s dollar-pegged stablecoin Ripple USD at the end of November.
On Monday, crypto exchange Binance obtained three distinct licenses from Abu Dhabi’s financial regulator, permitting it to operate its exchange, clearing house, and broker-dealer services. This came after its competitor Bybit secured regulatory approval in the UAE in early October.
Related: HSBC to bring tokenized deposits to US and UAE as stablecoin race heats up
UAE bets on crypto
The Central Bank of the UAE has been actively reassessing its cryptocurrency regulations. In November, it introduced rules for decentralized finance (DeFi) and the wider Web3 sector.
The newly established Federal Decree Law No. 6 of 2025 brings DeFi platforms, related services, and infrastructure providers into regulatory scrutiny if they facilitate payments, exchanges, lending, custody, or investment services, necessitating licenses. Local crypto lawyer Irina Heaver stated that “DeFi projects can no longer avoid regulation by claiming they are just code.”
Heaver informed Cointelegraph at the end of 2024 that the country solidified its status as a global crypto hub during that year.
In October 2024, the UAE exempted cryptocurrency transfers and conversions from value-added tax, shortly after Dubai’s digital asset regulator introduced stricter regulations on crypto marketing. Around the same time, the local free economic zone Ras Al Khaimah Digital Assets Oasis was also working on a legal framework for decentralized autonomous organizations.
Local regulators did not hesitate to enforce the rules, with Dubai’s Virtual Assets Regulatory Authority taking action against seven unlicensed crypto businesses, issuing fines and cease-and-desist orders.
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