Stablecoin issuer firm Circle was recently granted in-principle approval from Abu Dhabi financial authorities to serve as a money services provider in the region.
According to an official press release, the Financial Services Regulatory Authority of Abu Dhabi Global Market or ADGM have granted in-principle approval for the stablecoin firm to act as a money services provider.
This means that the firm has met the regulatory requirements needed to conduct business within the region. Though, the company would still need to await full regulatory approval before it can formally begin business operations in the ADGM.
The Abu Dhabi Global Market is a financial free zone located within the capital of the United Arab Emirates. It comes with its own regulatory system that require crypto firms to gain approval from the Financial Services Regulatory Authority before they can set up businesses and services in the region. Circle (USDC) recently entered the ADGM in December 2024.
Circle Co-Founder and CEO Jeremy Allaire said the in-principle approval underlines the firm’s commitment to regulatory compliance in the global stablecoin landscape.
“The UAE is paving the way for responsible innovators to build the internet financial system. This IPA from ADGM advances our strategy to establish deep roots in markets embracing the on-chain economy, creating new pathways for investment and innovation in the region,” said Allaire.
Chief of Market Development at ADGM, Arvind Ramamurthy, said Circle’s presence within the region aligns with their goal to become a crypto hub for innovation and increase its global credibility in the stablecoin space.
“We look forward to working with Circle as they expand their operations and contribute to the advancement of digital finance in the UAE,” said Ramamurthy.
Earlier this month, Circle’s Head of Global Policy Dante Disparte stated that the crypto space needs more regulatory clarity to help bring more investors and institutional players into the space. He mentioned Europe’s Markets in Crypto-Assets Regulation or MiCA framework as a benchmark example for stablecoin regulation.
