- Dubai recently approved the use of USDC and EURC stablecoins
- This approval marks the first time DIFC recognized stablecoins
- Dubai aims to solidify its position as a global crypto hub
One of the fastest-rising cryptocurrency hubs in the World, Dubai recently approved the use of two stablecoins in the region.
The Dubai Financial Service Authority (DFSA) has approved USD Coin (USDC), and EURC under its new crypto regulatory regime. The two stablecoins pegged to the U.S. Dollar and the Euro are now recognized cryptocurrency assets under the Dubai International Financial Center (DIFC).
This development is especially important because it marks the first time a stablecoin is approved by the DIFC. Circle, the issuer of these two stablecoins, celebrated the news in a press release.
Dante Disparte, Chief Strategy Officer and Head of Global Policy and Operations at Circle celebrated what he refers to as the “validation of our constructive approach to regulatory and policy engagement”. Disparte also emphasized how, as the first stablecoins to receive the DIFC nod—the USDC and the EURC are setting the standard for transparency, compliance, and utility.
United Arab Emirates – A Thriving Hub
By 2024, the United Arab Emirates ranked third in cryptocurrency adoption, according to the Henley Crypto Adoption Index. With a score of 41.6 (out of 60 total points), the UAE ranked above major world economies like the United States, England, and Australia.
Moreover, the nation ranks 2nd when it comes to exclusively public adoption, behind the USA. In terms of innovation and technology, the United Arab Emirates also got second place, behind Singapore.
In recent months, the Dubai government has been moving towards a more accepting and innovative approach to crypto. Developments like the Shiba Inu partnership, and the crypto VAT exemption have led to increased interest and investment in the region’s digital asset market, further solidifying Dubai’s position as a global crypto hub.
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