- Circle’s USDC and EURC are now approved stablecoins under Dubai’s crypto rules allowing wider use in financial services.
- The DFSA approval lets over 7000 firms in the DIFC use USDC and EURC for payments asset management and digital services.
- Circle expands in the Middle East with Dubai’s approval strengthening its role in regulated stablecoin adoption worldwide.
Circle has received approval from the Dubai Financial Services Authority (DFSA) for its stablecoins, USDC and EURC. These are now the first stablecoins recognized under Dubai’s crypto regulatory framework. This approval allows their use within the Dubai International Financial Centre (DIFC) for digital asset services, payments, and treasury management.
This allows over 7,000 financial institutions and fintech firms within the DIFC to seamlessly use USDC as well as EURC. They can now use these stablecoins for cross border payments, asset management, and other financial services. The DIFC enforces strict compliance standards, permitting only regulated digital assets.
Circle’s Global Regulatory Success
Circle’s approval in Dubai follows its growing compliance with global regulations. The company previously secured an Electronic Money Institution license in France. This marked it as the first stablecoin issuer to comply with the European Union’s MiCA regulations. Circle also followed suit in Canada to comply with the country’s latest stablecoin regulations.
Circle has been expanding its operations in the Middle East. In December 2024, it established a local entity in the UAE to drive adoption. It also partnered with LuLu Financial Holdings to facilitate cross-border payments using USDC. The latest approval in Dubai reinforces its presence in the region’s financial sector.
UAE’s Stablecoin Regulatory Framework
The decision of the DFSA is in line with the UAE’s overall stablecoin regulations. According to the Central Bank of the UAE, new rules on stablecoin payments were introduced in 2024. These rules restrict their use for goods and services to AED-backed tokens. Regulated virtual asset transactions can however be conducted with stablecoins regulated by the DIFC, the Abu Dhabi Global Market or the Virtual Assets Regulatory Authority. This enables USDC and EURC to run in Dubai’s expanding digital economy.
Circle’s regulatory success in Dubai highlights the increasing clarity surrounding stablecoins. With this approval, more financial institutions in the region can adopt USDC and EURC. This move supports the growing adoption of regulated digital assets worldwide.
