The Dubai Financial Services Authority has just granted regulatory status to Circle’s stablecoins, USD Coin (USDC) and EURC, marking a significant step forward for the crypto ecosystem in the United Arab Emirates. From now on, companies operating within the Dubai International Financial Center (DIFC) can legally integrate these digital assets into their day-to-day operations.
USDC and EURC become Dubai’s first officially recognized stablecoins
The United Arab Emirates continue to make news when it comes to crypto. Dubai Financial Services Authority (DFSA)) has recognized the USD Coin and the EURC as the first stablecoins approved under its crypto regime, allowing their regulated use in the Dubai International Financial Centre (DIFC).
This recognition enables DIFC’s 7,000 companies to integrate these stablecoins into their digital asset applications for payments, cash management and other financial services.
Established in 2004, DIFC serves financial companies in the Middle East, Africa and South Asia, with growth of 25% since 2023. In this district, only recognized cryptoactives are allowed, giving the USDC and EURC a competitive edge.
This approval is in line with the regulatory evolution of the United Arab Emirates. In 2024, the country introduced several laws structuring its crypto sector. In June, the Central Bank approved a supervisory system for stablecoins, while Dubai adapted its rules on cryptos including memecoins.
Competition intensifies in the UAE stablecoin market
In this favorable regulatory environment, competition between stablecoin issuers is accelerating. As Circle celebrates its first recognition in Dubai, Tether advances elsewhere in the region. As early as December 2024, the USDt was granted virtual asset status in Abu Dhabi.. The company is also diversifying its presence by teaming up with real estate platform Reelly Tech to integrate USDT into Emirati real estate transactions.
For its part, Circle records remarkable growth in response to this competition. USDC issuance jumped 23.4% in just one month, with its capitalization rising from $45.6 billion at the beginning of January to $56.3 billion in mid-February, reaching $57.2 billion by the end of February.
Despite this significant progress, Tether retains the advantage with its USDT still accounting for 63% of the market, illustrating the growing rivalry between these two giants on Emirati territory. This competition, stimulated by the UAE’s innovative regulatory framework, is contributing to the overall growth of the stablecoin market in the region.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
