Circle Secures Abu Dhabi License to Operate USDC as UAE Advances Crypto Regulations

• Regulatory Milestone: Circle’s new license enables full operations in Abu Dhabi, focusing on stablecoin services like USDC issuance and management.

• The appointment of Saeeda Jaffar as managing director strengthens Circle’s regional strategy in the Middle East and Africa.

• Including recent data, the UAE’s crypto sector has seen a surge, with over 20 new licenses issued in 2024 alone, boosting investor confidence.

Discover how Circle’s ADGM license expands stablecoin access in the UAE, a key crypto hub. Learn about regulatory advancements and opportunities for USDC users today.

What is the Circle ADGM License?

Circle ADGM license refers to the Financial Services Permission granted by the Financial Services Regulatory Authority of the Abu Dhabi Global Market, enabling Circle to function as a Money Services Provider in this prestigious international financial center. This approval, announced in early 2025, marks a significant step for the stablecoin issuer in the United Arab Emirates, allowing it to offer services related to digital assets and payments. By securing this license, Circle aligns with the UAE’s robust framework for financial innovation, ensuring compliance with high standards of transparency and risk management.

The license empowers Circle to expand its USDC stablecoin operations within the Abu Dhabi International Financial Centre, facilitating seamless integration into regional payment systems and partnerships. This development comes as the UAE positions itself as a global leader in cryptocurrency adoption, with Circle’s entry underscoring the maturity of its regulatory environment.

How Does the UAE’s Crypto Regulation Support Companies Like Circle?

The UAE’s regulatory landscape has evolved rapidly to foster innovation while prioritizing consumer protection, making it an attractive destination for firms like Circle. In November 2024, the Central Bank of the UAE introduced comprehensive rules under Federal Decree Law No. 6 of 2025, which now encompasses decentralized finance (DeFi) platforms and Web3 services involved in payments, lending, custody, or investments. These regulations require licensing for all such entities, closing previous loopholes where projects could claim exemption by operating solely as code.

Local expert Irina Heaver, a cryptocurrency lawyer, emphasized in late 2024 that DeFi projects can no longer evade oversight, highlighting the UAE’s commitment to a balanced ecosystem. Supporting data from regulatory reports shows that the Abu Dhabi Global Market (ADGM) has issued over 15 crypto-related licenses in the past year, including to major players in the stablecoin space. This wave of approvals demonstrates the authority’s focus on transparency and risk mitigation, as noted by Circle’s co-founder and CEO Jeremy Allaire, who praised the framework for setting a “high bar” that enables trusted stablecoins to scale in payments and finance.

Additionally, the UAE’s proactive enforcement adds credibility; for instance, Dubai’s Virtual Assets Regulatory Authority has fined and issued cease-and-desist orders to seven unlicensed crypto businesses in recent months. In October 2024, the country exempted cryptocurrency transfers and conversions from value-added tax, further incentivizing growth. These measures, combined with initiatives like the Ras Al Khaimah Digital Assets Oasis developing frameworks for decentralized autonomous organizations (DAOs), position the UAE as a secure hub for blockchain innovation.

Circle’s license fits seamlessly into this environment, allowing it to appoint Saeeda Jaffar—a senior vice president at Visa and experienced in Gulf operations—as managing director for the Middle East and Africa. Her role will drive strategic partnerships and expand USDC adoption, leveraging the stablecoin’s peg to the US dollar for reliable cross-border transactions.

Frequently Asked Questions

What does Circle’s ADGM license mean for USDC users in the UAE?

Circle’s ADGM license enables USDC users in the UAE to access regulated stablecoin services, including issuance, custody, and payments through a licensed Money Services Provider. This ensures enhanced security and compliance, with USDC maintaining its 1:1 USD backing, now supported by the Abu Dhabi Global Market’s stringent oversight for over 100 million circulating tokens.

Why is the UAE becoming a top destination for stablecoin issuers like Circle?

The UAE is emerging as a premier hub for stablecoin issuers due to its progressive regulations, tax incentives, and strategic location bridging East and West. With recent laws covering DeFi and Web3, plus exemptions on crypto VAT, it offers a stable environment where companies like Circle can innovate confidently, as evidenced by the influx of global firms establishing operations there.

The Abu Dhabi Global Market has been particularly active, granting licenses to a series of cryptocurrency entities in recent weeks. For example, Tether’s USDT, the largest stablecoin by market cap exceeding $120 billion, received similar approval earlier this week, solidifying its presence in the region. At the end of November 2024, Ripple’s RLUSD stablecoin also secured regulatory clearance in the same financial center, allowing it to offer dollar-pegged digital assets compliant with local standards.

Exchanges have followed suit; Binance obtained three licenses on Monday for its exchange, clearing house, and broker-dealer activities, enabling comprehensive services in Abu Dhabi. Competitor Bybit gained approval in early October 2024, reflecting the UAE’s open-door policy for licensed digital asset platforms. These developments align with broader UAE efforts, where the Central Bank continues to refine policies to integrate crypto into mainstream finance.

Traditional institutions are also entering the fray; HSBC announced plans to introduce tokenized deposits in the US and UAE, intensifying competition in the stablecoin arena. Meanwhile, reports indicate the Abu Dhabi Investment Council increased its Bitcoin ETF holdings threefold in the third quarter of 2024, signaling strong institutional interest.

Circle’s expansion underscores the UAE’s role in global crypto adoption. With a population increasingly engaging in digital finance—over 10% of residents using crypto apps according to 2024 surveys—the region’s infrastructure supports scalable solutions. Allaire’s comments highlight how such licenses build trust, essential for stablecoins to handle trillions in transaction volume annually.

The regulatory push extends beyond licensing; the UAE’s focus on anti-money laundering (AML) and know-your-customer (KYC) protocols ensures operations remain secure. Heaver noted that 2024 solidified the UAE’s status as a crypto powerhouse, with Dubai and Abu Dhabi leading enforcement and innovation. This environment not only attracts issuers like Circle but also encourages investment, with venture capital inflows to UAE blockchain startups reaching $2.5 billion in 2024.

For Circle, the license opens doors to collaborate with local banks and fintechs, potentially integrating USDC into remittance corridors popular in the Gulf. As regulations mature, expect more announcements from the firm on product launches tailored to the Middle East market.

Key Takeaways

• Regulatory Approval Boost: Circle’s ADGM license positions it as a key player in the UAE’s stablecoin market, enabling compliant USDC services amid rising regional demand.
• Leadership Enhancement: Saeeda Jaffar’s appointment brings Visa expertise to drive partnerships and growth in the Middle East and Africa.
• UAE’s Crypto Momentum: With new DeFi laws and tax exemptions, the UAE is solidifying its global hub status—investors should monitor for further licensing waves.

Conclusion

Circle’s ADGM license represents a pivotal advancement for stablecoin operations in the UAE, integrating seamlessly with the nation’s forward-thinking crypto regulations that prioritize innovation and protection. As more firms like Tether and Ripple follow suit, the region is set to lead in digital finance. Stay informed on these developments to capitalize on emerging opportunities in the evolving blockchain landscape.