Stablecoin issuer Circle is deepening its presence in the United Arab Emirates, having successfully obtained approval to operate as a financial service provider within the Abu Dhabi International Financial Center. The company announced on Tuesday that it has been granted a Financial Services Permission license by the Financial Services Regulatory Authority of the Abu Dhabi Global Market. This authorization permits Circle to conduct its stablecoin-related activities as a Money Services Provider within the financial center.
In conjunction with this expansion, Circle has appointed Saeeda Jaffar as the managing director for its operations spanning the Middle East and Africa. Jaffar, who also holds positions as a senior vice president and group country manager for the Gulf Cooperation Council at Visa, will be responsible for overseeing Circle’s regional strategic plans and fostering the growth of partnerships aimed at increasing the adoption of USDC.
Jeremy Allaire, co-founder and chief executive of Circle, commented on the regulatory environment, stating that the Abu Dhabi Global Market's regulatory framework upholds stringent expectations concerning user protection and risk mitigation. He emphasized that these high standards are crucial for the effective operation of stablecoins at scale within the global payments landscape.
Abu Dhabi Attracts a Growing Number of Major Crypto Companies
Circle's approval positions it alongside an increasing number of prominent industry players that have secured regulatory authorization within the Abu Dhabi financial center. Just earlier this week, Tether's USDt, recognized as the largest stablecoin in circulation, achieved a significant regulatory milestone in Abu Dhabi. Prior to this, Ripple's dollar-linked token received approval in late November, reflecting a sustained trend of regulatory engagement in the region.
On Monday, Binance was awarded three distinct licenses from the same regulatory body, enabling the exchange to operate its trading platform and provide clearing and broker-dealer services. Binance's competitor, Bybit, had previously secured its own approval in early October. These successive approvals underscore a consistent increase in licensed digital asset companies operating within the UAE.
UAE Enhances Oversight of Decentralized Finance and Web3 Services
The Central Bank of the UAE has been actively reviewing and refining regulations pertaining to the broader cryptocurrency sector. In November, the bank introduced new requirements specifically for services associated with decentralized finance and Web3 technologies.
Under the provisions of Federal Decree Law No. 6 of 2025, any entity offering services related to payments, exchange, lending, custody, or investment must obtain a license. Local crypto legal expert Irina Heaver noted that this regulatory update effectively addresses the long-standing assertion by some projects that their operations, being purely code-based, fall outside official regulatory purview.
In October 2024, the UAE implemented a removal of value-added tax on cryptocurrency transfers and conversions, a move that followed shortly after Dubai introduced stricter regulations for marketing activities within the digital asset sector.
Concurrently, the Ras Al Khaimah Digital Assets Oasis has been developing new regulatory frameworks for decentralized autonomous organizations. Local authorities have also taken enforcement actions against entities operating without the necessary licenses.