Circle secures an Abu Dhabi licence as the UAE expands its crypto regulatory framework

December 9, 2025 Nxtgen Virtue

Circle, a stablecoin provider, has received regulatory approval to operate as a financial services operator in Abu Dhabi, marking yet another step in the UAE’s expanding embrace of digital asset regulation.

Circle Internet Group stated on Tuesday that it had received a Financial Services Permission licence from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM). This credential enables the organisation behind the USDC stablecoin to provide money services in the worldwide financial centre.

Circle has appointed Saeeda Jaffar as managing director for its Middle East and Africa business, in addition to the license announcement. Jaffar, who presently holds senior positions at Visa overseeing Gulf Cooperation Council regions, will lead the company’s regional expansion and partnership development.

Wave of Crypto Licensing in Abu Dhabi

ADGM recently licensed multiple cryptocurrency enterprises for financial operations. Just days before, Tether’s USDt—the market-leading stablecoin and Circle’s main competitor—achieved a similar regulatory triumph in the financial centre, as did Ripple’s dollar-backed stablecoin in November.

This week, Binance received three licenses from Abu Dhabi’s regulator, authorising its exchange platform, clearing operations, and broker-dealer services. Bybit had already received UAE regulatory approval in early October.

UAE’s Strategic Crypto Positioning

The UAE Central Bank is actively revising its cryptocurrency regulation approach. In November, new legislation was enacted addressing decentralised finance (DeFi) and the larger Web 3.

Federal Decree Law No. 6 of 2025 currently mandates a license for DeFi platforms and service providers engaged in payments, exchanges, lending, custody, or investing operations. Legal expert Irina Heaver pointed out that DeFi projects may no longer avoid monitoring by claiming to be solely algorithmic.

Heaver stated that 2024 reinforced the UAE’s status as a key worldwide crypto centre. In October, the country eliminated the value-added tax on bitcoin transactions, but Dubai’s digital asset body imposed stricter advertising regulations. The Ras Al Khaimah Digital Assets Oasis free zone also created governance mechanisms for decentralised autonomous organisations.

Enforcement has matched regulatory developments, with Dubai’s Virtual Assets Regulatory Authority issuing penalties and court orders to seven unauthorised crypto activities.

Important Disclaimer

This article is for educational purposes only and should not be considered financial advice. Cryptocurrency markets are extremely volatile and unpredictable. All investments carry risk of loss. Past performance is not indicative of future results. Always consult with qualified financial professionals before making investment decisions.