Money transfer company Circle granted preliminary approval by Abu Dhabi authorities to offer money services.
Firm Circle Achieves Major Milestone in Abu Dhabi
In a significant development, the stablecoin issuer firm Circle has secured preliminary approval from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM), dubbed as the green light to operate as a money services provider in the region.
Per the official announcement, Abu Dhabi's financial authorities have given the nod to Circle to perform as a money services provider, provided that the company fulfills the necessary regulatory conditions before it can officially commence business operations in ADGM.
Located within the capital of the United Arab Emirates (UAE), Abu Dhabi Global Market is a leading financial free zone with its own regulatory system that mandates cryptocurrency firms to obtain approval from the Financial Services Regulatory Authority before setting up shop in the area. USD Coin (USDC), issued by Circle, entered the ADGM in December 2024.
Addressing the news, Circle's Co-Founder and CEO, Jeremy Allaire, asserted that this preliminary approval underscores the company's commitment to adhering to regulatory norms in the global stablecoin market. He further stated, "The UAE is paving the way for responsible innovators to construct the internet financial system. This preliminary approval by ADGM advances our strategy to establish a solid foothold in markets championing on-chain economy, opening avenues for investment and innovation in the region."
The Chief of Market Development at ADGM, Arvind Ramamurthy, expressed his optimism about Circle's presence in the region, as it aligns with their goal to foster innovation in crypto and enhance the region's global credibility in the stablecoin sector. Ramamurthy added, "We eagerly anticipate collaborating with Circle as they scale their operations and contribute to the progression of digital finance in the UAE."
Earlier this month, Circle's Head of Global Policy, Dante Disparte, stressed the need for regulatory clarity in the crypto space to welcome more investors and institutional players. He pointed to Europe's Markets in Crypto-Assets Regulation (MiCA) framework as a benchmark example for stablecoin regulations.
Circle's foray into Abu Dhabi reflects a broader strategy of complying with stringent regulations like MiCA, which imposes stringent reserve and transparency requirements. As the first stablecoin issuer to comply with MiCA, Circle's strategic approach underscores their commitment to regulatory compliance while expanding their reach in the global stablecoin market. This move positions Circle as a frontrunner in compliant stablecoin adoption. [1] [2] [3] [4]
- Circle, the crypto firm known for issuing USD Coin (USDC), has received preliminary approval from the ADGM's Financial Services Regulatory Authority to operate as a money services provider in the Abu Dhabi Global Market (UAE).
- The UAE's financial authorities have given Circle the go-ahead to start operating, with the promise that the company meets all necessary regulatory conditions before full business operations commence.
- The ADGM, a leading financial free zone, requires cryptocurrency firms to obtain approval from the Financial Services Regulatory Authority before setting up in the area, and USDC entered the ADGM in December 2024.
- Preliminary approval from ADGM, according to Circle's Co-Founder and CEO, Jeremy Allaire, highlights the company's dedication to adhering to global stablecoin market regulations.
- Circle's strategic approach in Abu Dhabi, which includes complying with stringent regulations like the European MiCA framework, positions them as a leader in compliant stablecoin adoption, aiming to expand their reach in the global stablecoin market.
