Abu Dhabi Steps Up Crypto Regulation: Tether, Circle Secure Major Approvals
Tether and Circle, issuers of the 2 largest stablecoins on the earth, have simply acquired main regulatory greenlights in UAE’s Abu Dhabi.
Tether’s Stablecoin Recognized As ARFT, While Circle Obtains FSP License
Major developments associated to the cryptocurrency sector have occurred within the United Arab Emirates (UAE) this week, with Tether and Circle each successful approvals in Abu Dhabi Global Market (ADGM), the worldwide monetary middle and free financial zone of Abu Dhabi, UAE’s capital.
First, as Tether has announced in a press launch, USDT issued on quite a lot of blockchains has been acknowledged as an Accepted Fiat-Referenced Token (ARFT) in ADGM. USDT already acquired approval from ADGM final yr, however the earlier recognition solely included the Ethereum, Solana, and Avalanche variations. With the brand new regulatory nod, USDT obtainable on Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON has additionally entered the market.
“By extending recognition to USD₮ on a number of main blockchains, ADGM additional strengthens Abu Dhabi’s place as a world hub for compliant digital finance,” mentioned Tether CEO Paolo Ardoino.
USDT being thought of as an ARFT signifies that licensed individuals licensed by ADGM’s Financial Services Regulatory Authority (FSRA) can supply regulated actions involving the stablecoin on practically all its native blockchains. “Introducing USD₮ inside ADGM’s regulated digital asset framework reinforces the position of stablecoins as important elements of at the moment’s monetary panorama,” famous Ardoino.
Meanwhile, Circle, the issuer of USDC, has additionally superior within the area with a brand new license from the FSRA, in response to an announcement. The license, known as the Financial Services Permission (FSP), permits the corporate to function as a Money Services Provider in ADGM.
Arvind Ramamurthy, ADGM Chief Market Development Officer, mentioned:
Circle’s regulated presence in ADGM reinforces our ambition to construct a trusted, institutional-grade digital asset ecosystem in Abu Dhabi, one which enhances market confidence, helps real-world use circumstances, and cements the UAE’s position as a number one hub for regulated digital finance.
The greenlight from ADGM follows the popularity of Circle’s USD and EUR stablecoins by the Dubai Financial Services Authority (DFSA) in February of this yr. The transfer made USDC and EURC the primary stablecoins to be authorised within the Dubai International Financial Centre (DIFC).
The new FSP license means “Circle is positioned to broaden regulated fee and settlement use circumstances within the UAE for companies, builders, and monetary establishments,” the assertion famous.
Stablecoins have witnessed fast progress all through 2025, setting a number of information. The near-constant progress in these tokens, nevertheless, noticed a break in October, because the mixed market cap of this aspect of the cryptocurrency sector reversed course.
As the above chart from DefiLlama exhibits, the stablecoin market cap declined to a low in mid-November. Since this backside, although, capital inflows have returned for these fiat-tied belongings, with the market cap as soon as once more nearing in on a brand new file.
Bitcoin Price
At the time of writing, Bitcoin is floating round $90,100, up nearly 4% within the final seven days.
