Circle’s Stablecoins Gain Approval in Dubai
Circle has announced that its stablecoins, USDC and EURC, have received official approval for use and promotion within the Dubai International Financial Centre (DIFC). This development was disclosed in a statement released on Monday. The Dubai Financial Services Authority (DFSA) has recognized USDC and EURC as legitimate crypto tokens within the DIFC framework.
According to Circle, “With this approval, financial institutions and fintech companies operating in the DIFC can seamlessly integrate USDC and EURC into their digital asset services, payment systems, treasury management, and a variety of other financial applications.” This recognition is seen as a significant milestone for Circle, enhancing the credibility and utility of its stablecoins in a rapidly evolving financial landscape.
Ryan Lee, Chief Analyst at Bitget Research, commented on the implications of this approval, stating, “This move is a game-changer, as it boosts trust in stablecoins in light of ongoing regional volatility. It also strengthens Circle’s competitive position against Tether’s USDT, which currently dominates the market. This could potentially reshape the $157 billion stablecoin industry by legitimizing USDC and EURC for wider adoption.”
In 2022, Dubai implemented regulations aimed at fostering the growth of the crypto sector, allowing firms to obtain licenses and apply for recognition of their tokens. Circle emphasized that “Only recognized crypto tokens are authorized for use and promotion in the DIFC, which is home to over 6,000 firms.” The DIFC serves as a vital financial hub, encompassing businesses from 77 different countries, further underscoring the global significance of this regulatory approval.
