Circle Secures License to Operate as Financial Service Provider in Abu Dhabi Financial Center

Stablecoin firm, Circle Internet Group, has attained approval to act as a financial services provider in Abu Dhabi International Financial Centre, expanding its footprint in the United Arab Emirates. Circle received the Financial Services Permission license from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM), enabling them to operate as a Money Services Provider in the International Financial Centre (IFC).

Circle Breaks Ground in the Middle East

The financial tech juggernaut will now be able to deepen its foray into the UAE market. The Circle Internet Group disclosed this development in a public statement that comes as part of their broader agenda to spearhead cryptocurrency use in the mainstream financial sector. Circle’s breakthrough in this regard also coincides with the appointment of Saeeda Jaffar as the Managing Director for Circle Middle East and Africa. In her new role, she would also be serving as a Senior Vice President and Group Country Manager for the Gulf Operation Council at Visa, where she would spearhead the development of the stablecoin issuer’s regional strategy and partnerships.

A High Standard Regulatory Framework

Jeremy Allaire, Circle’s co-founder, chairman, and CEO, pointed out that the granting of their license by ADGM was confirmation of their regulatory compliance. The ADGM has set high standards for transparency, risk management, and consumer protection, which Mr. Allaire says are vital if trusted stablecoins are to support payments and finance at scale.

ADGM Attracting Crypto Companies

The ADGM has recently been issuing licenses for financial operations to an influx of cryptocurrency companies. Earlier, the ADGM awarded licenses to other stablecoin issuers, including Tethers USDt, Circle’s main competitor, and Ripple’s dollar-pegged stablecoin Ripple USD. On the other hand, Cryptocurrency giant Binance has obtained three separate licenses from Abu Dhabi’s financial regulator. This development grants Binance the legitimacy to operate their exchange, clearing house, and broker-dealer services within the Abu Dhabi jurisdiction.

UAE’s Evolving Cryptocurrency Regulations

The Central Bank of UAE has been proactive in updating its cryptocurrency regulations. It recently introduced laws for the broader Web3 industry and decentralized finance (DeFi). The newly introduced Federal Decree Law No. 6 of 2025 stipulates that DeFi platforms, along with related services and infrastructure providers, must adhere to regulation if they provide payments, exchange, lending, custody, or investment services. They are required to secure licenses to operate legally. In October 2024, the UAE exempted cryptocurrency transfers and conversions from value-added tax. This strategic move came just a month after stricter rules had been placed on cryptocurrency marketing by the digital asset regulator in Dubai. Simultaneously, Ras Al Khaimah Digital Assets Oasis, a free economic zone, was developing a legal framework to accommodate decentralized autonomous organizations.

Conclusion

Cryptocurrencies continue to stake their claim in the landscape of global finance. In the UAE, the granting of licenses to the Circle and other cryptocurrency companies by ADGM and the Central Bank of UAE signals a growing recognition of the value of digital assets in the country’s financial system. Potential investors could look forward to more opportunities in the evolving cryptocurrency market. The UAE is sending a clear signal to the world that it intends to be at the forefront of the rapidly maturing crypto space.