Dubai’s Financial Services Authority (DFSA) has officially recognized Circle’s stablecoins, USDC and EURC, making them the first regulated stablecoins under the Dubai International Financial Centre’s (DIFC) crypto token regime. This milestone allows these stablecoins to be used extensively by over 6,000 firms within the DIFC, including financial institutions and fintech companies, for services such as digital asset transactions, payments, and treasury management.
This approval marks a significant achievement for Circle, which has previously demonstrated success in meeting regulatory standards across global markets. Notably, it became the first major stablecoin issuer to comply with Canada’s listing rules and the European Union’s MiCA regulations. It also highlights Circle’s expanding influence in the Middle East. In December 2024, the company launched a local branch in the UAE and partnered with LuLu Financial Holdings to facilitate cross-border payments and remittances using USDC.
Circle’s Chief Strategy Officer, Dante Disparte, remarked, “The DFSA’s recognition of USDC and EURC within the DIFC underscores our proactive approach to regulatory engagement.” He emphasized that this approval will help set global standards for transparency and compliance, facilitating easier global use of digital dollars and euros.
This approval is part of the UAE’s broader regulatory framework for stablecoins. In 2024, the Central Bank of the UAE introduced rules stating that only AED-backed stablecoins can be used for retail purchases. However, stablecoins approved by the DIFC, ADGM, or VARA, including USDC and EURC, are eligible for virtual asset transactions.
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