The Dubai Financial Services Authority has approved Circle’s USDC and EURC as the first officially recognized stablecoins under Dubai’s new token regime.
Circle announced on Feb. 24 that the DFSA had approved both USDC (USDC) and EURC (EURC) as crypto tokens under the new token regime of the Dubai International Financial Centre. It’s the first such approval by the DIFC, an independent financial and commercial jurisdiction in the United Arab Emirates.
The financial district has operated independently since its establishment in 2004 and offers a free economic zone with over 6,000 companies. New regulations on digital asset use restrict the integration of only officially recognized crypto tokens.
Under this crypto token regime, the DIFC requires all platforms and companies seeking to offer financial services involving digital assets to obtain regulatory approval. The DFSA licenses these entities, and Circle’s USD- and Euro-pegged stablecoins are the first to receive official approval from the regulator.
“The DFSA’s approval of USDC and EURC as recognized crypto tokens within the DIFC is yet another validation of our constructive approach to regulatory and policy engagement,” Dante Disparte, Circle’s chief strategy officer and head of global policy, said.
With this milestone, Circle adds its traction to recent regulatory approvals in the European Union and Canada. The company is among the first to receive a nod as a Markets in Crypto Assets, or MiCA compliant company in 2024. Circle also has a greenlight to offer its products in Canada, after becoming the first stablecoin issuer to comply with the country’s new listing rules.
As Circle’s USDC and EURC get the nod in the DIFC, Tether, the issuer of USDT (USDT), has also made inroads in the UAE.
In December 2024, Tether secured approval from the Abu Dhabi Financial Services Regulatory Authority, with USDT allowed as an accepted virtual asset in the Abu Dhabi Global Market.
Like the DIFC, the ADGM is a financial-free zone in UAE.
