Circle Internet Group, Inc., the developers of USDC stablecoin, with an office in the UAE, has announced that the Dubai Financial Services Authority (DFSA) has officially approved USDC and EURC as recognized crypto tokens within the Dubai International Financial Centre (DIFC).
The DFSA’s approval means financial institutions and fintech entities operating in DIFC can now use the USDC and EURC stablecoins in their business operations.
As per the announcement, this is the first time that stablecoins have been approved within the DIFC crypto token regime.
Circle’s USDC and EURC benefit from issuer’s regulatory compliance
More than 600 Fintech and financial institutions in DIFC will be able to make payments using USDC and EURC, as well as utilize the stablecoins for treasury management and a range of financial applications.
Currently, Circle is the only stablecoin issuer to comply with the European Union MICA regulations as well as Canada’s new listing rules.
Dante Disparte, Chief Strategy Officer and Head of Global Policy and Operations at Circle noted that the approval of USDC and EURC as recognized tokens in DIFC is a validation of their regulatory commitment.
He stated, “As the first stablecoins to receive this designation, USDC and EURC continue to set the global standard for transparency, compliance, and utility. This milestone aligns with our mission to make digital dollars and euros more accessible, interoperable, and useful for businesses, developers, and financial institutions worldwide.”
DIFC has accepted crypto tokens within its token regime before
XRP, Bitcoin, and Ethereum were among five other tokens approved previously within DIFC. In 2023 TonCoin (TON), and Ripple’s XRP joined Bitcoin (BTC), Ethereum, and Litecoin as recognized crypto tokens by the Dubai Financial Services Authority (DFSA), the financial regulatory agency of the special economic zone, the Dubai International Financial Centre (DIFC).
An important point to note is that the Central Bank of UAE, in its Stablecoin Payments Regulations, noted that stablecoins that have been approved and regulated within the UAE can be used to purchase virtual assets in the country.
However algorithmic stablecoins such as DAI and USDe are not allowed to be utilized at all in the UAE.
In 2024, the first AED (UAE Dirham) stablecoin was approved by the Central Bank of the UAE.
Tether, who has announced plans to launch its own AED stablecoin, has not yet received initial approval as of the time of this publication.
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