- Circle gains in-principle approval to operate in Abu Dhabi’s ADGM.
- The move aligns with Circle’s global regulatory strategy and the UAE’s fintech goals.
- Clearer regulations like MiCA are seen as vital for industry growth.
Through an official press release, Circle announced that the Financial Services Regulatory Authority (FSRA) part of Abu Dhabi Global Market (ADGM) in Abu Dhabi has given stablecoin issuer Circle in-principle approval for engaging in money services providers within the free zone.
It is a key step for Circle, which indicates that the firm has satisfied the first edition of the preliminary regulatory conditions required to operate as a business in the area. Nevertheless, Circle must receive full regulatory authorization from ADGM before formal business can commence in ADGM.
Circle Began ADGM Operations in December 2024
Its regulatory framework applies to the Abu Dhabi Global Market, the designated financial free zone in the capital of the United Arab Emirates. Crypto companies must get approval from the FSRA to establish themselves in the zone. For its part, Circle started in (and first established itself in) the ADGM in December 2024, thus opening its first set of regional integration steps.
On the development, Circle Co-Founder and CEO Jeremy Allaire noted that the milestone contributes to the company’s global regulatory strategy. “The United Arab Emirates is working to create the environment for those who are responsible to do so that will build the financial internet system.”
“The establishment by ADGM of this IPA represents a strong line of progression that will extend our strategy to lay down roots in markets that are embracing the ‘on-chain economy’ and will open new paths for investment and innovation in this region,” Allaire said.
ADGM Welcomes Circle to Local Crypto Market
Circle joining the local market welcome by Arvind Ramamurthy, Chief of Market Development at ADGM, QCRI, said, “Circle’s entry in the local market is congruent with ADGM’s aspirations of putting Abu Dhabi at the forefront of crypto innovation.” “We hope to collaborate with Circle as it Advanced digital Finance in the UAE,” Ramamurthy said.
Circle’s Head of Global Policy, Dante Disparte reiterated the increasing need for more transparent regulatory frameworks in the digital asset space earlier this month. When speaking about regulatory guidelines, he held up Europe’s Markets in Crypto Assets (MiCA) regulation as a benchmark to follow to reap the benefits of stablecoin regulation to the same extent as it will attract more institutional participation and investor confidence in the sector.
