Circle, known as the issuer of the USDC stablecoin, has received in-principle approval (IPA) from the Abu Dhabi Financial Services Regulatory Authority (FSRA). This is an important step for the firm as it allows it to operate in the local market as a financial services provider (FSP) and move closer to obtaining a full license.
This is reported by Finway
It is worth noting that in December 2024, Circle registered a new subsidiary in the Abu Dhabi market and announced its partnership with the local company Lulu Financial Holdings.
“The UAE is paving the way for responsible innovators to create a digital financial system. This IPA from ADGM advances our strategy to establish a deep-rooted presence in markets encompassing the on-chain economy, creating new avenues for investment and innovation in the region. It also underscores Circle’s unwavering commitment to global oversight of stablecoins—strengthening trust, compliance, and adoption worldwide while laying a solid foundation for the internet financial system,” commented Circle CEO Jeremy Allaire.
The receipt of the IPA indicates that the company has met all regulatory requirements to provide financial services in the ADGM free economic zone. However, Circle cannot yet engage in such activities as it does not have a full license. For instance, in Singapore, it took the company about seven months to complete the registration process.
Additionally, Circle announced a partnership with Abu Dhabi’s technology ecosystem Hub71, joining as a digital assets partner.