USDC and EURC Earn First Stablecoin Approval Under Dubai’s New Crypto Regulations

Circle’s USDC and EURC stablecoins have become the first officially recognized crypto tokens under the Dubai Financial Services Authority’s (DFSA) newly established token regime, announced on February 24, 2025. This marks a significant milestone as both stablecoins receive regulatory approval under the Dubai International Financial Centre’s (DIFC) crypto token regime.

The DIFC, a prominent financial and commercial jurisdiction in the United Arab Emirates (UAE), has operated independently since its inception in 2004. It provides a free economic zone that hosts over 6,000 companies. Recently, new regulations governing digital assets have been put in place, restricting the integration of only officially recognized crypto tokens. With the DFSA’s approval, Circle’s USD- and Euro-pegged stablecoins are now among the first to be officially accepted under these regulations.

To operate within the DIFC, platforms and companies must receive regulatory approval from the DFSA to offer financial services related to digital assets. As part of this approval process, Circle’s USDC and EURC stablecoins now carry the distinction of being the first stablecoins to meet the regulator’s requirements for recognition.

Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, commented on the approval, stating that the recognition of USDC and EURC as officially approved crypto tokens “is yet another validation of our constructive approach to regulatory and policy engagement.”

This approval by the DIFC follows Circle’s increasing global regulatory traction. Circle has also received approvals in the European Union and Canada. In 2024, Circle became one of the first companies to comply with the EU’s Markets in Crypto Assets (MiCA) regulations. Additionally, it secured permission to operate in Canada, where it was the first stablecoin issuer to comply with the country’s new listing regulations.

While Circle has made significant strides in the UAE, it’s not alone in the region. Tether, the issuer of USDT, has also made inroads in the UAE. In December 2024, Tether received approval from the Abu Dhabi Financial Services Regulatory Authority (FSRA), allowing USDT to be accepted as a virtual asset in the Abu Dhabi Global Market (ADGM), another financial-free zone in the UAE.

The approval of Circle’s USDC and EURC, along with Tether’s success in the UAE, demonstrates a growing acceptance and regulatory framework for stablecoins in the Middle East, highlighting Dubai’s increasing role in the global digital asset market.