Circle's USDC and EURC Approved as First Recognized Stablecoins Under Dubai's New Token Regime

The Dubai Financial Services Authority has approved Circle’s USDC and EURC as the first officially recognized stablecoins under Dubai’s new token regime.

Dubai has approved the first stablecoins under its new token regime, with Circle’s USDC and EURC getting the greenlight from the Dubai Financial Services Authority.

The approval marks the first time a crypto token has been officially recognized by the Dubai International Financial Centre, an independent financial and commercial jurisdiction in the United Arab Emirates.

Established in 2004, the financial district operates independently and boasts a free economic zone that houses over 6,000 companies. New regulations in the zone now limit the integration of only officially recognized crypto tokens.

As part of the crypto token regime, the DIFC mandates that all platforms and companies looking to offer financial services involving digital assets obtain regulatory approval. The DFSA licenses these entities, and now, Circle’s USD- and Euro-pegged stablecoins are the first to receive the official stamp of approval from the regulator.

“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,” said Dante Disparte, Circle’s chief strategy officer and head of global policy.

The approval adds to Circle’s recent momentum with regulatory approvals in the European Union and Canada. The company was among the first to be named as a Markets in Crypto Assets (MiCA)-compliant company in 2024. It also received the go-ahead to offer its products in Canada after becoming the first stablecoin issuer to comply with the country’s new listing rules.

While Circle’s USDC and EURC have gotten the nod in the DIFC, another stablecoin, Tether (USDT), has also made regulatory inroads in the UAE.

In December 2024, Tether secured approval from the Abu Dhabi Financial Services Regulatory Authority, with USDT being allowed as an accepted virtual asset in the Abu Dhabi Global Market.

The ADGM, like the DIFC, is a financial-free zone in the UAE.