Key Points
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Circle obtained a Financial Services Permission (FSP) license from Abu Dhabi’s ADGM, allowing it to operate as a Money Services Provider.
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The license comes as the UAE expands regulatory clarity for stablecoins, DeFi platforms and crypto firms.
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Tighter rules, new tax exemptions, and multiple major crypto approvals signal the UAE’s rapid emergence as a global digital-asset hub.
Circle secured regulatory approval to operate in Abu Dhabi’s international financial center, marking a major step in the stablecoin issuer’s expansion into the Middle East as the United Arab Emirates accelerates its broader crypto regulatory overhaul.
Circle, the company behind the USDC stablecoin, said Tuesday it received a Financial Services Permission license from the Financial Services Regulatory Authority within the Abu Dhabi Global Market (ADGM). The authorization formally allows Circle to operate as a Money Services Provider and offer regulated financial services in the jurisdiction.
The move underscores the UAE’s strategy to attract global fintech players by providing regulatory clarity for digital assets while tightening standards on transparency, risk management and consumer protection.
Circle Deepens Regional Presence as UAE Builds Regulatory Rails
Alongside the license, Circle appointed Saeeda Jaffar as Managing Director for the Middle East and Africa. Jaffar — also a senior executive at Visa overseeing Gulf operations — is expected to guide Circle’s regional expansion strategy as stablecoin adoption grows across cross-border payments and corporate financial services.
CEO Jeremy Allaire said ADGM’s framework “sets a high bar for transparency, risk management and consumer protection,” arguing that such standards are essential for scaling “trusted stablecoins” into mainstream financial systems.
USDC, currently the world’s second-largest stablecoin, has seen rising institutional adoption even as competitors such as Tether maintain a larger global footprint.
Wave of Licensing Points to a Consolidating Crypto Hub
Circle’s greenlight follows a rapid succession of approvals for major crypto issuers and exchanges in Abu Dhabi. Earlier this week, Tether’s USDt and Ripple USD both received regulatory recognition inside the ADGM, signaling a coordinated approach toward stablecoin oversight.
Binance also secured three separate licenses — covering exchange operations, clearing services and broker-dealer functions — while Bybit achieved full regulatory approval in early October. The momentum reflects Abu Dhabi’s ambition to become a controlled but innovation-friendly hub for global crypto companies.
The UAE has increasingly differentiated itself from other jurisdictions by providing clear rulebooks rather than fragmented policy signals. The ADGM’s licensing structure, combined with the Central Bank’s national initiatives, aims to attract large-scale infrastructure players rather than only speculative trading platforms.
UAE Introduces Comprehensive DeFi and Web3 Rules
In November, the UAE introduced Federal Decree Law No. 6 of 2025 — a sweeping regulatory framework that formally brings DeFi platforms, Web3 service providers and decentralized infrastructure operators under financial supervision. The law requires licensing for any platform offering payments, exchange, lending, custody or investment services, closing loopholes that previously allowed unregulated operations.
“DeFi projects can no longer avoid regulation by claiming they are just code,” said UAE-based crypto lawyer Irina Heaver.
The UAE’s regulatory tightening has been complemented by business-friendly policies. In late 2024, authorities exempted crypto transfers and conversions from value-added tax, while Dubai’s digital asset regulator introduced stricter guidelines for marketing and operational disclosures. Dubai’s VARA also cracked down on seven unlicensed firms, issuing fines and cease-and-desist orders.
A Region Positioning for Global Stablecoin Leadership
Circle’s approval exemplifies how the UAE sees stablecoins as part of its long-term financial modernization strategy rather than a speculative niche. With multiple regulated issuers now active in the ADGM, the groundwork is being laid for blockchain-based payments, settlement networks and cross-border corporate treasury services.
Whether the UAE’s emerging regulatory clarity attracts further institutional adoption — or prompts tighter global competition — will shape how stablecoins integrate into financial infrastructure through 2026 and beyond.
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