Circle, a prominent issuer of the USDC stablecoin, has reportedly secured in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi to operate as a money services provider in the region.
Circle, a prominent issuer of the USDC stablecoin, has reportedly secured in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi to operate as a money services provider in the region.
According to a recent statement by Circle, this milestone marks a key step toward obtaining a Financial Services Permission (FSP), reinforcing the company’s commitment to advancing stablecoin oversight, trust, and compliance across the Middle East and Africa (MEA).
In Abu Dhabi, securing approval as a money services provider (MSP) enables Circle to legally operate within the Abu Dhabi Global Market (ADGM) financial framework. With this designation, Circle can facilitate regulated digital asset transactions using USDC, such as cross-border payments and institutional settlements.
However, without local regulatory approval, Circle’s ability to provide these services was limited. For instance, despite offering cross-border payments in cooperation with SWIFT, the company’s activities were subject to the regulatory landscape of the countries where it held banking licenses, effectively hindering operations in countries like China or Vietnam due to a lack of relevant permits.
Moreover, despite receiving a payment institution license from the Monetary Authority of Singapore (MAS) in May 2023, Circle’s services remained restricted in the region due to a lack of money services provider status in the countries where its partners were located.
This limitation posed challenges for Circle in expanding its services and contributing to the development of the crypto ecosystem in the region. However, with the recent approval from FSRA, Circle will be able to fully leverage its capabilities and provide valuable financial solutions to a wider audience.
The news of Circle's approval in Abu Dhabi is likely to be met with interest from the crypto community, as it highlights the growing acceptance of digital assets by traditional financial institutions.
