The Dubai Financial Services Authority (DFSA) has approved Circle’s USDC and EURC, marking a major step in the region’s digital asset framework. This approval makes them the first stablecoins recognized under the Dubai International Financial Centre’s (DIFC) new token regulations. As a result, digital asset companies in Dubai will now have more clarity regarding compliance.
Announced on February 24, this decision reinforces DIFC’s commitment to crypto oversight. Since its establishment in 2004, DIFC has operated independently and now serves as a financial hub for over 6,000 companies. To ensure market stability, the new regulations allow only officially recognized tokens to be integrated into financial services.
Circle Gains Regulatory Recognition
The DFSA’s licensing rules require all digital asset platforms to obtain regulatory approval before offering financial services. Because of this requirement, Circle’s USDC and EURC have become the first stablecoins to achieve this recognition. This approval reflects growing trust in stablecoins and their role in the financial ecosystem.
Dante Disparte, Circle’s chief strategy officer, emphasized the milestone, stating, “The DFSA’s approval of USDC and EURC as recognized crypto tokens within the DIFC validates our constructive approach to regulatory and policy engagement.” His statement highlights the significance of clear regulations in fostering innovation.
Circle continues to gain recognition worldwide. For instance, the company recently secured approvals in the European Union under the Markets in Crypto-Assets (MiCA) framework. Additionally, in Canada, it was the first stablecoin issuer to comply with new listing rules. These regulatory achievements strengthen Circle’s position in the global financial landscape.
Expanding Crypto Adoption in the UAE
As USDC and EURC gain approval in DIFC, Tether’s USDT is also expanding in the region. In December 2024, the Abu Dhabi Financial Services Regulatory Authority authorized USDT as a virtual asset within the Abu Dhabi Global Market (ADGM), another financial-free zone in the UAE. Consequently, stablecoin adoption is steadily increasing across different jurisdictions in the country.
Dubai’s regulatory approach positions the emirate as a global leader in crypto adoption. With stablecoins like USDC and EURC now recognized, digital assets are expected to see greater use in the region’s financial sector. Furthermore, this approval opens the door for more crypto-based financial products, which could drive economic growth.
