Circle Receives In-Principle Approval from Abu Dhabi's Financial Regulator to Launch USDC Stablecoin

Crypto company Circle, the issuer of the USDC stablecoin, announced that the financial regulatory body of Abu Dhabi has approved the company

Crypto company Circle, the issuer of the USDC stablecoin, announced that it has been approved by the financial regulatory body of Abu Dhabi with an In-Principle Approval (IPA), a step toward securing a full financial services license.

The company disclosed that the approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi will now allow Circle to apply for a Financial Services Permission (FSP) license. Once granted, this license will enable Circle to operate as a fully regulated money services provider in the United Arab Emirates (UAE).

Circle stated that this move aligns with its broader strategy to forge deeper ties within traditional markets and facilitate the widespread adoption of a crypto-powered global economy. The company's aim is to develop a trustworthy and stable digital currency that is renowned for its transparency and complete compliance with applicable regulations.

The UAE has been actively integrating blockchain technology into its financial services offerings, and it currently regulates crypto firms.

This announcement highlights the UAE’s commitment to establishing a blockchain and crypto-powered economy in the Middle East, as such regulatory approval signifies the acceptance of cryptocurrency as a valid form of money. Circle recognized this positive development for the UAE, highlighting the country's willingness to embrace new and innovative technologies.

“We are pleased to announce that we have received In-Principle Approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi to apply for a Financial Services Permission (FSP) license to operate in the UAE. This is a significant milestone for Circle as we continue to expand our global footprint and introduce new products and services to a wider range of customers around the world. We are grateful for the support of FSRA in this process and look forward to working closely with them as we seek to obtain a full license to provide financial services in the UAE.”, said Jeremy Allaire, CEO of Circle.

The news comes just days after First Abu Dhabi Bank (FAB) unveiled its own stablecoin, receiving approval from the UAE Central Bank. FAB plans to utilize the stablecoin for both local and global use, enabling rapid cross-border payments and seamless access to financial markets with minimal to no barriers.

Prior to this, Tether, a leading stablecoin issuer, became the first to announce its application for approval to operate in the UAE. However, it appears that the financial regulator in Abu Dhabi will ultimately be granting final approval for crypto firms to operate in the country.

This move is a positive sign for the future of the crypto industry in the UAE, as it is an indication that the government is committed to creating a healthy ecosystem for blockchain innovation to thrive.

The past few months have seen a flurry of activity from stablecoin issuers seeking to expand their presence in the Middle East. In a previous development, Paxos, the issuer of the Pax Dollar (USDP) stablecoin, announced plans to launch its services in Saudi Arabia.

Many of these companies are also preparing for the introduction of new coins and tokens in the coming year, aiming to capitalize on the increasing interest in cryptocurrency throughout the region. Several companies are now developing their own tokens, which will be sold to the public in a token generation event.