The US dollar stablecoin USDC issuer Circle, known for its compliance, has now received preliminary approval as a money service provider from the ADGM Financial Services Regulatory Authority (FSRA). This means that Circle has met the relevant requirements to conduct financial business in the ADGM, although it still awaits full regulatory approval. This progress may signal that the acquisition of a full license is imminent. (Background: Coinbase, Circle, and several other giants plan to apply for a 'U.S. banking license.' Is the era of on-chain banking coming?) (Additional context: Circle launched the stablecoin 'Refund Protocol' to address payment pain points? A quick overview of pros and cons) The US dollar stablecoin USDC issuer Circle has made another move! According to (The Block) report yesterday (29th), after establishing a new legal entity in the Abu Dhabi Global Market (ADGM) in December 2024, Circle has now received preliminary approval as a money service provider from the ADGM Financial Services Regulatory Authority (FSRA). This marks an important milestone for Circle in expanding financial services in the Middle East. The preliminary approval means that Circle has met the relevant requirements to conduct financial business in the ADGM, although it still awaits full regulatory approval. However, this progress may indicate that the acquisition of a full license is imminent. In response, Circle's co-founder and CEO Jeremy Allaire commented: The UAE is paving the way for responsible innovators to build an internet financial system. This preliminary approval from the ADGM advances our strategy to deeply root ourselves in markets embracing the on-chain economy, creating new pathways for investment and innovation in the region. It also highlights Circle's long-term commitment to global stablecoin regulation, which enhances trust, compliance, and global adoption while laying a solid foundation for the internet financial system. What does Circle's ADGM regulatory approval mean? The preliminary approval from ADGM has far-reaching implications for Circle: First, it signifies Circle's official entry into the Middle Eastern financial market, particularly Abu Dhabi as a global financial center, which will help promote the adoption of USDC in areas such as cross-border payments, trade financing, and decentralized finance (DeFi). Second, ADGM is known for its high standards and transparency. This approval enhances Circle's regulatory compliance image and solidifies its position in the stablecoin market. Compared to Tether, which leads in market share but has questioned regulatory transparency, Circle highlights its compliance advantages with monthly reserve attestations from the Big Four accounting firms and multiple licenses in the U.S., EU, UK, and Singapore. At the same time, this aligns with Circle's plans for an IPO. Circle has recently submitted an IPO application to the U.S. Securities and Exchange Commission, and the regulatory progress from ADGM will boost investor confidence and add appeal to the IPO. Circle has obtained compliance licenses in multiple countries Although Circle's scale in the stablecoin market is far below its competitor Tether, as a stablecoin issuer, Circle is undoubtedly a leader in compliance. According to official information, Circle has obtained compliance licenses in several countries and regions, for example: United States: Circle holds money transmission licenses in 46 U.S. states, Washington D.C., and Puerto Rico, and has obtained a BitLicense in New York. In addition, Circle is registered as a money services business (MSB) with the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN). European Union: Circle has obtained a French Electronic Money Institution (EMI) license and complies with the requirements of the (Markets in Crypto-Assets Regulation) (MiCA), making USDC and EURC among the first approved stablecoins. United Kingdom: Circle also holds an EMI license. Singapore: Circle has obtained a Major Payment Institution (MPI) license. Dubai: USDC and EURC have been recognized by the Dubai Financial Services Authority. Japan: USDC has been approved by the Financial Services Agency as a foreign stablecoin for distribution. Related Reports Comprehensive analysis of the revenue composition and symbiotic relationship with exchanges behind the 60 billion USDC How will Circle's listing impact the stablecoin market? Comparison of the pros and cons of USDT, USDC, and DAI Circle submits 'IPO application' with an estimated valuation of 5 billion USD; why is Coinbase the hidden big winner of USDC? "USDC lands in the Middle East! Circle receives preliminary approval for money services in Abu Dhabi, global compliance further advanced" This article was originally published in BlockTempo (the most influential blockchain news media).

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