Circle Receives In-Principle Approval From Abu Dhabi Global Market

Circle, a prominent issuer of stablecoins, has received in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a money services provider. This approval signifies that Circle has met the necessary regulatory requirements to conduct business within the region, although full regulatory approval is still pending before formal operations can commence.

The Abu Dhabi Global Market is a financial free zone with its own regulatory framework, requiring crypto firms to gain approval from the FSRA before establishing businesses and services. Circle entered the ADGM in December 2024, and this latest development marks a significant step in its expansion strategy. Circle Co-Founder and CEO Jeremy Allaire emphasized the firm’s commitment to regulatory compliance, stating that the UAE is leading the way in fostering responsible innovation in the financial system. Allaire highlighted that this approval advances Circle’s strategy to establish a strong presence in markets embracing the on-chain economy, creating new pathways for investment and innovation in the region.

Arvind Ramamurthy, Chief of Market Development at ADGM, echoed this sentiment, noting that Circle’s presence aligns with ADGM’s goal to become a hub for crypto innovation and enhance its global credibility in the stablecoin space. Ramamurthy expressed enthusiasm about working with Circle as it expands its operations and contributes to the advancement of digital finance in the UAE.

Earlier this month, Circle’s Head of Global Policy Dante Disparte emphasized the need for more regulatory clarity in the crypto space to attract more investors and institutional players. He cited Europe’s Markets in Crypto-Assets Regulation (MiCA) framework as a benchmark example for stablecoin regulation, underscoring the importance of clear guidelines for the industry’s growth.

Circle’s expansion into Abu Dhabi is part of a broader strategy to enhance its global footprint and tap into new markets. The company has been actively seeking regulatory approvals in various jurisdictions to ensure compliance with local laws and regulations. This latest approval from ADGM is a testament to Circle’s commitment to regulatory compliance and its efforts to build a robust and secure financial ecosystem.

The approval also highlights the growing acceptance of stablecoins and digital assets in the financial industry. Stablecoins, designed to maintain a stable value, have gained popularity as a means of payment and store of value. Circle’s USDC stablecoin, in particular, has become one of the most widely used stablecoins in the market, with a significant user base and liquidity.

Circle’s partnership with Hub71, a technology ecosystem in Abu Dhabi, further underscores its commitment to the region. Hub71 provides a supportive environment for fintech companies, offering access to resources, talent, and regulatory support. This partnership is expected to boost Circle’s fintech initiatives and accelerate its growth in the region.

The in-principle approval from ADGM is a significant step forward for Circle as it continues to expand its operations and strengthen its position in the global financial market. The company’s focus on regulatory compliance and its commitment to building a secure and reliable financial ecosystem are key factors in its success. As Circle continues to seek regulatory approvals in other jurisdictions, it is well-positioned to capitalize on the growing demand for stablecoins and digital assets.