Author: Deng Tong, Golden Finance
On December 9, 2025, Circle announced that it has obtained a financial services license issued by the Financial Services Regulatory Authority of Abu Dhabi Global Market, allowing it to operate as a currency service provider in the Abu Dhabi International Financial Centre. In addition to Circle, other crypto companies such as Binance, Tether, Ripple, and Animoca Brands have also achieved regulatory success in Abu Dhabi.
Where is Abu Dhabi? Which crypto companies have obtained licenses in Abu Dhabi? Why has Abu Dhabi become a crypto capital?
1. Where is Abu Dhabi?
Abu Dhabi is the capital of the United Arab Emirates, the second-largest city in the UAE, and the capital of the Emirate of Abu Dhabi. It is located on the southwestern coast of the UAE, on a T-shaped island in the Persian Gulf. Most of the city and emirate are situated on the mainland connected to other regions of the country.
In Arabic, Abu Dhabi means "the place of the gazelle." The region has a typical desert climate, with little annual rainfall and summer temperatures reaching up to 50°C. The city was founded in 1761, and its early residents made a living by pearl diving; today, most residents are from the Arab Al Yasi tribe (the current President of the UAE hails from this tribe). The development of oil resources in the 1960s transformed the economy, with oil reserves ranking fifth globally. Abu Dhabi has transitioned from a desert to a modern metropolis and is now the political, industrial, cultural, and commercial center of the UAE.
On May 1, 2013, Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, issued a decree in his capacity as the ruler of Abu Dhabi to establish a financial free trade zone on Abu Dhabi's Al Maryah Island. This financial free trade zone, named "Abu Dhabi Global Market" (ADGM), allows for various business activities, including banking and financial services, commercial investments, securities trading, insurance, and banking consultancy services.
2. Which crypto companies obtained licenses in Abu Dhabi in 2025?
- Circle
On December 9, 2025, stablecoin issuer Circle announced that it has obtained a financial services license (FSP) from the Financial Services Regulatory Authority of Abu Dhabi Global Market, allowing it to operate as a currency service provider in the Abu Dhabi International Financial Centre (IFC). Additionally, Circle appointed Dr. Saeeda Jaffar as Managing Director for the Middle East and Africa. Jaffar will leave Visa to join Circle, where she served as Senior Vice President and Group Country Manager for the Gulf Cooperation Council. She will lead Circle's regional strategy, deepen partnerships with financial institutions and businesses, and promote the adoption of the company's digital dollar and on-chain payment solutions in the UAE and the broader Middle East and Africa.
- Tether
On December 8, 2025, Tether's stablecoin USDT was officially recognized as a "fiat-backed token" in the Abu Dhabi Global Market, allowing licensed institutions to provide regulated custody and trading services, marking a significant step in the UAE's regulation of stablecoins. Tether CEO Paolo Ardoino stated that this recognition "reinforces the position of stablecoins as an important component of today's financial landscape," indicating the growing application of stablecoins in remittances, cross-border settlements, and the digital asset market.
- Binance
On December 8, 2025, Binance announced that it has obtained full regulatory approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), and its global platform will officially operate under ADGM's international regulatory framework. In accordance with regulatory requirements, the platform's operations will transition to a new three-entity structure to enhance transparency, oversight mechanisms, and risk management. Starting January 6, 2026, Binance services will be provided by three ADGM-licensed entities: Nest Exchange Services Limited, responsible for spot and derivatives trading; Nest Clearing and Custody Limited, responsible for clearing and custody as the central counterparty for derivatives trading; and Nest Trading Limited, providing over-the-counter trading, instant exchange, and some wealth management services.
- Ripple
On November 27, 2025, Ripple announced that its USD-backed stablecoin Ripple USD (RLUSD) has been recognized by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi as an "approved fiat-pegged token," which can be used in the UAE capital Abu Dhabi's international financial center—Abu Dhabi Global Market.
- Animoca Brands
On November 24, 2025, Animoca Brands announced that it has received in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a regulated fund management company. Upon meeting relevant conditions and obtaining final regulatory approval, Animoca Brands will be authorized to conduct collective investment fund management activities within or from ADGM.
- GFO-X
On September 6, 2025, the crypto derivatives trading platform GFO-X Group received in-principle approval from Abu Dhabi Global Market (ADGM) to launch a digital asset exchange and clearinghouse, with plans to officially operate in 2026. This approval allows GFO-X to operate as a recognized investment exchange and clearinghouse.
- Bitcoin Suisse
On May 21, 2025, Swiss cryptocurrency financial service provider Bitcoin Suisse announced that its subsidiary BTCS (Middle East) Ltd. has received in-principle approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The IPA granted by the FSRA of the Abu Dhabi International Financial Centre lays the groundwork for Bitcoin Suisse to obtain a full license, enabling it to provide regulated crypto financial services in the vibrant international financial center of Abu Dhabi, including virtual assets, crypto securities, derivatives trading, and local custody.
3. Why has Abu Dhabi become a crypto capital?
1. Improving Regulatory Policies
The fundamental reason why Abu Dhabi has become a favorite for crypto companies is its improving regulatory policies for cryptocurrencies.
On June 25, 2018, Abu Dhabi Global Market (ADGM) launched a new regulatory framework for crypto assets (the "Guidance on the Regulation of Crypto Asset Activities") aimed at enhancing governance, oversight, and transparency of crypto asset activities. This regulatory framework covers crypto asset trading activities conducted by exchanges, custodians, and other intermediaries within ADGM. The framework aims to address various risks associated with crypto asset activities, including money laundering and financial crime risks, consumer protection, technology governance, custody, and trading operations.
On May 14, 2019, the Financial Services Regulatory Authority of Abu Dhabi Global Market revised its "Guidance on the Regulation of Crypto Asset Activities." The updated guidance reinforced the FSRA's focus and commitment as a financial services regulatory authority to support innovation while maintaining strict regulatory practices.
Some details are as follows:
Stablecoins/Fiat Tokens: Stablecoins fully backed by fiat currency (fiat tokens) will be regarded as digital representations of money. If used as a payment tool for remittance activities defined by the 2015 Financial Services and Markets Regulations (FSMR) of Abu Dhabi Global Market (ADGM), such activities will be licensed and regulated as "providing currency services." The guidance also outlines the FSRA's regulatory approach to issuers, custodians, and exchanges using fiat tokens.
Custody: Further clarification on the types of crypto asset custody activities that can be conducted and the FSRA's expectations for custody governance and operations.
Technology Governance: Introduced further improvements and clarifications, including those related to forks caused by changes in the underlying protocols of crypto assets, as well as governance and control expectations for crypto asset exchanges and license holders.
FSRA Anti-Money Laundering and Sanctions Rules and Guidelines (AML): As the anti-money laundering rules manual fully applies to regulated activities of crypto asset operators/holders, this guidance has been updated in accordance with the latest local and global changes and further clarifies the use of new regulatory and monitoring technologies in this field.
At the end of 2022, the Financial Services Regulatory Authority of Abu Dhabi Global Market launched a new regulatory framework applicable to the issuance of fiat-referenced tokens (FRT), which came into effect on December 5, 2022. This framework established the issuance of FRT as a new independent regulatory activity, reducing the regulatory burden on FRT issuers while enhancing financial stability and investor protection. Additionally, the FSRA initiated a consultation (Consultation Paper No. 11 of 2024), proposing a series of revisions to the FSRA's digital asset regulatory framework, reflecting the growing attention of regional regulators to the digital asset sector.
On November 2, 2023, Abu Dhabi officially implemented the world's first regulatory system for DLT foundations. ADGM introduced the "Distributed Ledger Technology Foundation Regulations 2023," providing a pathway for blockchain project parties, decentralized autonomous organizations (DAOs), and others to register as legal entities, supporting these entities in conducting token issuance and related activities while clarifying governance, transparency, and other regulatory requirements to facilitate the compliant development of Web3 entities.
On June 10, 2025, the Financial Services Regulatory Authority of Abu Dhabi Global Market announced the implementation of revisions to its digital asset regulatory framework. The revisions focused on modifying the processes for accepting virtual assets (VA) in Abu Dhabi Global Market (ADGM) and using them as approved virtual assets (AVA), as well as setting corresponding capital requirements and fees for authorized persons (virtual asset companies) engaged in regulated activities related to virtual assets. The revisions also introduced specific product intervention rights for virtual assets and established relevant rules to confirm the existing prohibition on the use of privacy tokens and algorithmic stablecoins within ADGM. Finally, the revisions expanded the investment scope of venture capital funds.
With its relatively clear regulatory framework, Abu Dhabi and the entire UAE have become important players in the emerging stablecoin and digital asset markets. The region itself is a global business hub. Abu Dhabi Global Market has become a central place for exchanges, custodians, and other cryptocurrency-related businesses seeking structured regulation to obtain licenses.
2. A Tax Haven for Cryptocurrencies
Additionally, for individual crypto practitioners, Abu Dhabi is a tax haven. Individuals engaging in cryptocurrency trading, staking, mining, or selling are not required to pay any taxes. Abu Dhabi does not impose personal income tax or capital gains tax on digital assets. For crypto companies, ADGM has implemented a 50-year tax exemption policy since 2004, allowing crypto businesses within the zone to be exempt from taxes related to profits, capital, and assets, while employee income is exempt from personal income tax. It also allows for 100% foreign ownership with no capital repatriation restrictions. In 2023, the UAE introduced a 9% federal corporate tax, but crypto companies with annual taxable income ≤ 375,000 dirhams (approximately $100,000) can be exempt from this tax, significantly reducing the initial operating costs for small and medium-sized crypto startups.
3. Sovereign Wealth Funds Entering the Crypto Space
Abu Dhabi is home to several sovereign wealth funds, including the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, which have clear official backgrounds and have increasingly engaged in the cryptocurrency sector through direct investments and establishing related enterprises in recent years.
As of June 30, 2025, the Abu Dhabi sovereign wealth fund Mubadala Investment Company held 8,726,972 shares of IBIT (BlackRock Bitcoin ETF), with a market value of approximately $534 million.
On April 29 of this year, the Abu Dhabi sovereign wealth fund ADQ, corporate group IHC (IHC.AD), and the largest bank by assets in the UAE, First Abu Dhabi Bank (FAB.AD), announced plans to launch a new stablecoin backed by dirhams (the official currency of the United Arab Emirates). The three companies stated in their announcement that the stablecoin will be fully regulated by the Central Bank of the UAE.
Conclusion
From a desert to a modern metropolis, from pearl diving to a crypto paradise, Abu Dhabi has successfully carved out another path for development based on its oil economy: the capital of crypto innovation. With clear regulatory frameworks for cryptocurrencies, tax exemptions or low tax policies, and the leading participation of sovereign capital, Abu Dhabi has attracted the attention of numerous crypto companies from around the world.
In the future, as the global crypto industry continues to develop and improve, Abu Dhabi's "crypto capital" label may become even more solidified, and its regulatory experience could serve as a reference model for the world.
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