Hassan Maishera
TL;DR
-
Circle has obtained a Financial Services Permission license from Abu Dhabi Global Market.
-
This license allows the company to operate as a Money Services Provider in the UAE.
Circle Obtains the ADGM License as it Expands in the Middle East
Circle, the company behind the USDC stablecoin, announced on Tuesday that it has secured a Financial Services Permission (FSP) license from Abu Dhabi Global Market (ADGM).
The license gives the company a formal foothold in the United Arab Emirates' regulated crypto ecosystem. Issued by ADGM’s Financial Services Regulatory Authority (FSRA), the license allows Circle to operate as a Money Services Provider inside the financial free zone.
This latest development comes after Circle received in-principle regulatory approval from the regulator in April.
Furthermore, Circle also appointed Dr. Saeeda Jaffar to lead operations in the Middle East and Africa region as managing director. Dr. Saeeda brings a wealth of experience, having worked at Visa.
The license would allow Circle to offer its USDC stablecoin for business payments, settlements, and other financial use cases across the UAE.
The UAE has become a key global hub for the cryptocurrency market, with several companies now operating in the region. On Monday, Binance announced that it had obtained full ADGM approval, allowing it to operate an exchange, a clearing house, and a brokerage service in Abu Dhabi.
Stablecoins are increasingly gaining adoption in the global financial ecosystem, with countries putting in place regulatory guardrails for the fast-growing $300 billion asset class. Tether’s USDT and Circle’s USDC are the two leading stablecoins, with market caps of $185 billion and $78 billion, respectively.
