DFSA Licenses Circle’s Stablecoins for Use in DIFC
The Dubai Financial Services Authority (DFSA) has officially approved Circle’s stablecoins, USD Coin (USDC) and EURC, as the first approved tokens under its cryptocurrency regime. The approval allows firms in the Dubai International Financial Centre (DIFC) to utilize these stablecoins for payment, treasury management, and other financial services.
DIFC’s Growing Crypto Market
The DIFC, established in 2004, is a premier financial hub for the Middle East, Africa, and South Asia. The district is still expanding, with nearly 7,000 active firms—a 25% increase from 2023. Only authorized crypto tokens are permitted in the DIFC, making this approval a remarkable step forward in the adoption of digital assets.
Strengthening UAE’s Crypto Regulations
The regulatory approval of USDC and EURC comes amid increasing regulatory clarity in the UAE. UAE regulators implemented licensing regimes for digital assets in 2024, including a new regime for the regulation of stablecoins approved by the Central Bank in June. Dubai also amended its crypto token regulations to enable local and foreign funds to invest in digital assets.
Tether’s Parallel Expansion in UA
While Circle’s stablecoins are the first to be licensed in the DIFC, competitor Tether has also made inroads in the UAE. In December 2024, Abu Dhabi recognized Tether’s USDT as a virtual asset, and Tether is integrating USDT into the real estate market in the UAE through a partnership with Reelly Tech.
Rising Demand for Stablecoins
USDC’s market capitalization grew 23.4%, from $45.6 billion on Jan. 8 to $57.2 billion as of Feb. 24. Despite that growth, Tether’s USDT still reigns supreme with a 63% market share, according to DefiLlama.
Stablecoins have played a key role in the ongoing crypto bull run, with the total stablecoin market cap rising by nearly $100 billion since December 2023. Dubai’s regulatory advancements position it as a leading hub for stablecoin adoption and digital asset innovation.
