Circle has announced that its stablecoins USDC and EURC are fully recognized by the Dubai Financial Services Authority (DFSA).
This makes these two stablecoins the first ones to be regulated coins under the DIFC’s crypto token regime.
The approval, announced today, means that USDC and EURC can be used more widely by over 6,000 firms in the DIFC financial institutions and fintech companies for digital asset services, payments, and treasury management.
This approval follows Circle’s earlier achievements in global regulation. Circle is the first major stablecoin issuer to succeed in meeting the new regulations set in place in Canada listing rules and the European Union (MiCA).
It also shows Circle’s growing presence in the Middle East. In December 2024, Circle opened a local entity in the UAE to support its growth in the region. The company also formed a partnership with LuLu Financial Holdings to use USDC for cross-border payments and remittances.
Dante Disparte, Circle’s Chief Strategy Officer, commented, “The DFSA’s approval of USDC and EURC as recognized crypto tokens within the DIFC is yet another validation of our constructive approach to regulatory and policy engagement.”
He added that this approval will set global standards of transparency and compliance, making digital dollars and euros easier for businesses to use worldwide.
This approval also comes in the context of the UAE’s broader approach to stablecoin regulation. The Central Bank of the UAE released stablecoin payment rules in 2024. These rules say that only AED-backed stablecoins can be used to buy goods and services in the UAE.
However, stablecoins regulated by DIFC, ADGM, or VARA can be used for virtual asset purchases. USDC and EURC are now among those stablecoins approved for such use.
[cryptotimes]