Circle Internet Financial Receives In-Principle Approval from Abu Dhabi Regulators to Expand into the Region

The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) has granted in-principle approval to Circle Internet Financial, the issuer of the USDC stablecoin, to operate as a money services provider within the region.

With this approval, Circle can now serve as a money services provider in Abu Dhabi. It also marks a significant step forward for the firm in expanding its global footprint.

Highlighting the implications of this development, the firm stated that it has met all the necessary requirements and is compliant, having met the criteria set by the regulator to operate a financial services business in accordance with the relevant legislation.

However, it’s important to note that while the in-principle approval is a positive step, it does not yet signify full regulatory approval from ADGM.

This process may take a few more weeks or months to complete.

Announcing this new development, Jeremy Allaire, Co-founder and CEO of Circle, said that such approvals by the UAE showcase the country’s initiative to open doors for responsible innovators who are keen on building the internet financial system.

According to Allaire, this in-principle approval from ADGM further optimizes Circle’s strategy to forge deep roots in specific markets.

Highlighting the firm’s interest in markets that are actively embracing the onchain economy and those that are creating new avenues for investment and innovation in the region, he added that they are pleased to be recognized by ADGM for meeting the required standards to operate a money services business.

This move follows Circle’s recent achievement of becoming the first stablecoin issuer to comply with the EU’s Markets in Crypto Assets (MiCA) regulation after securing an Electronic Money Institution (EMI) license from France’s banking regulator (ACPR) earlier this year.

This milestone speaks volumes about the company’s unwavering commitment to global stablecoin oversight. The aim is to foster greater trust, compliance, and adoption of the internet financial system without any compromises.

Earlier this year, Circle announced the incorporation of a legal entity within the ADGM as part of its broader expansion plans within the Middle East and Africa.

Announcing its plans, Circle said that its mission is to create a stablecoin infrastructure that can be used to enhance financial inclusion and accessibility.

The said stablecoin infrastructure is focused on addressing the existing gaps in financial services. It would achieve this without compromising on existing payment systems, but rather complementing them. It hopes to do this especially in high-traffic remittance corridors like those that traverse the Middle East.

During the Abu Dhabi Finance Week, Jeremy Allaire, Co-founder and CEO of Circle, stated that, “By incorporating in the ADGM and collaborating with industry leaders like LuLuFin, we strengthen our commitment to advancing the digital asset economy in the region.”

In February, the Dubai Financial Services Authority (DFSA) granted approval to Circle to offer USDC and EURC as regulated digital assets in the Dubai International Financial Centre (DIFC). This move made both assets the first stablecoins officially recognized under Dubai’s crypto regulatory regime.

Financial institutions licensed to operate within the DIFC can now easily integrate stablecoins into their platforms for use cases such as cross-border payments, asset management, treasury solutions, and other financial applications.

Moreover, Circle is also partnering with Hub71, Abu Dhabi’s global tech ecosystem, to foster innovation in digital assets.