Thomas Daniels
Circle’s USDC and EURC have been officially recognized by the Dubai Financial Services Authority (DFSA) as the first stablecoins under Dubai’s new crypto token framework. Dubai’s dedication to regulated digital assets within the Dubai International Financial Centre (DIFC) is reaffirmed by this historic approval.
An important milestone in the United Arab Emirates’ (UAE) approach to digital asset oversight was reached on February 24 when Circle announced that the DFSA had approved USDC and EURC as compliant cryptocurrency tokens. With more than 6,000 businesses, the DIFC is a free economic zone that was created in 2004 as an independent financial and commercial entity. Only officially approved tokens may be incorporated into financial services under the crypto token framework, guaranteeing adherence to Dubai’s changing laws governing digital assets.
In order to provide crypto-related financial services, platforms need to obtain regulatory clearance from the DFSA. Circle is the first stablecoin issuer to receive permission under this paradigm, with USDC and EURC officially acknowledged.
Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, highlighted the significance of this development by saying:
“USDC and EURC’s recognition as recognized cryptocurrency tokens in the DIFC by the DFSA is further evidence of our positive approach to regulatory and policy engagement.”
This permission comes after Circle’s recent regulatory victories in Canada and the EU. The business obtained permission to sell its stablecoin products under Canada’s revised listing regulations and was one of the first to achieve Markets in Crypto-Assets (MiCA) compliance standards in 2024.
Tether (USDT), Circle’s competitor, has also grown in the United Arab Emirates. The Abu Dhabi Global Market (ADGM), another important financial-free zone in the United Arab Emirates, now accepts USDT as a virtual asset after Tether received approval from the Abu Dhabi Financial Services Regulatory Authority in December 2024.
Stablecoin issuers like Circle and Tether are establishing significant footholds in the region as Dubai and Abu Dhabi continue to improve their regulatory frameworks for digital assets, thereby influencing the UAE’s position as a global center for the adoption of regulated cryptocurrencies.
