Is Abu Dhabi the crypto capital? Why Binance, Tether, Circle and other crypto giants are choosing Abu Dhabi

# Abu Dhabi: The Rising Global Crypto Capital – Where It Is, Key Players, and Why It Shines  

By Deng Tong  

Jinse Finance  

On December 9, 2025, Circle announced it had obtained a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This license allows the stablecoin issuer to operate as a money service provider within the Abu Dhabi International Financial Centre (IFC). Beyond Circle, major crypto players including Binance, Tether, Ripple, and Animoca Brands have also secured regulatory milestones in Abu Dhabi.  

Where is Abu Dhabi? Which crypto firms have obtained licenses there? And why has Abu Dhabi emerged as a global crypto hub?  

## I. Where is Abu Dhabi?  

Abu Dhabi is the capital of the United Arab Emirates (UAE), the country’s second-largest city, and the capital of the Emirate of Abu Dhabi. Located on a T-shaped island in the Persian Gulf, along the mid-western coast of the UAE, most of the city and emirate lie on the mainland connected to other parts of the country.  

The name "Abu Dhabi" translates to "place of the gazelle" in Arabic. The region features a typical desert climate with scarce annual rainfall and summer temperatures reaching up to 50°C. Founded in 1761, the city’s early residents relied on pearl diving for their livelihoods. Today, most inhabitants belong to the Al Nahyan tribe of western Arabia – the current UAE President hails from this tribe. The development of oil resources in the 1960s drove economic transformation, with Abu Dhabi now holding the world’s fifth-largest oil reserves. Transforming from a desert outpost to a modern metropolis, it is now the political, industrial, cultural, and commercial hub of the UAE.  

On May 1, 2013, Sheikh Khalifa bin Zayed Al Nahyan, then President of the UAE and Ruler of Abu Dhabi, issued a decree establishing a financial free trade zone on Al Maryah Island in the capital. Named the Abu Dhabi Global Market (ADGM), this zone permits business activities including banking and financial services, commercial investment and investment banking, securities trading, insurance, and banking consulting.  

[QS7eisqsuGuEIc5aOS8F64oyfhLmB5to3tulL4pJ.jpeg]  

## II. Which Crypto Firms Secured Licenses in Abu Dhabi in 2025?  

### Circle  

On December 9, 2025, stablecoin issuer Circle announced it had obtained a Financial Services Permission (FSP) from the FSRA of ADGM, authorizing it to operate as a money service provider within the Abu Dhabi IFC. Additionally, Circle appointed Dr. Saeeda Jaffar as Managing Director for the Middle East and Africa (MEA). Jaffar joins Circle from Visa, where she served as Senior Vice President and Group Country Manager for the Gulf Cooperation Council (GCC). She will lead Circle’s regional strategy, deepen partnerships with financial institutions and enterprises, and accelerate the adoption of the company’s digital dollar and on-chain payment solutions across the UAE and broader MEA market.  

### Tether  

On December 8, 2025, Tether’s stablecoin USDT was officially recognized as a "fiat-linked token" by ADGM, allowing licensed institutions to offer regulated custody and trading services. This marks a significant step forward in the UAE’s stablecoin regulation. Paolo Ardoino, CEO of Tether, stated that the recognition "reinforces stablecoins’ position as a crucial component of today’s financial landscape," reflecting their growing adoption in remittances, cross-border settlements, and digital asset markets.  

### Binance  

On December 8, 2025, Binance announced it had obtained a full regulatory license from the FSRA of ADGM, enabling its global platform to operate under ADGM’s international regulatory framework. To comply with regulatory requirements, the platform will migrate to a new three-entity structure to enhance transparency, oversight mechanisms, and risk management. Starting January 6, 2026, Binance’s services will be provided by three ADGM-licensed entities:  

- Nest Exchange Services Limited: Responsible for platform operations including spot and derivatives trading;  

- Nest Clearing and Custody Limited: Handles clearing and custody, acting as a central counterparty for derivatives transactions;  

- Nest Trading Limited: Offers over-the-counter (OTC) trading, instant exchange, and select wealth management services.  

### Ripple  

On November 27, 2025, Ripple announced that its USD-backed stablecoin, Ripple USD (RLUSD), had been approved by the FSRA as a "recognized fiat-backed token" for use within ADGM, the international financial center of Abu Dhabi.  

### Animoca Brands  

On November 24, 2025, Animoca Brands received in-principle approval from the FSRA of 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, crypto derivatives trading platform GFO-X Group secured in-principle approval from ADGM to launch a digital asset exchange and clearinghouse, scheduled to commence operations in 2026. The approval allows GFO-X to operate as a recognized investment exchange and clearinghouse.  

### Bitcoin Suisse  

On May 21, 2025, Swiss crypto financial services provider Bitcoin Suisse announced that its subsidiary, BTCS (Middle East) Ltd., had obtained an In-Principle Approval (IPA) from the FSRA of ADGM. The IPA lays the groundwork for Bitcoin Suisse to secure a full license, enabling it to offer regulated crypto financial services in ADGM’s dynamic international financial center, including trading of virtual assets, crypto securities, and derivatives, as well as local custody.  

## III. Why Has Abu Dhabi Become a Crypto Capital?  

### 1. Evolving and Comprehensive Regulatory Framework  

The fundamental reason Abu Dhabi has become a favorite among crypto firms lies in its robust regulatory framework for digital assets.  

On June 25, 2018, ADGM launched a comprehensive regulatory framework for crypto assets – the "Regulation of Virtual Asset Activities in ADGM" – aimed at strengthening governance, oversight, and transparency of crypto-related activities. This framework covers crypto asset transactions conducted by exchanges, custodians, and other intermediaries within ADGM, addressing risks such as money laundering, financial crimes, consumer protection, technical governance, custody, and trading operations.  

On May 14, 2019, the FSRA revised the framework, reinforcing its commitment to supporting innovation while upholding rigorous regulatory practices. Key updates included:  

- **Stablecoins/Fiat Tokens**: Fiat-backed stablecoins are recognized as digital representations of currency. When used as payment instruments for remittance activities (as defined in ADGM’s 2015 Financial Services and Markets Regulations), they are regulated as "money services." The framework also outlines FSRA’s oversight approach for issuers, custodians, and exchanges of fiat tokens.  

- **Custody**: Clarified permissible crypto asset custody activities and FSRA’s expectations for custody governance and operations.  

- **Technical Governance**: Introduced refinements and clarifications, including those related to forks from underlying protocol changes, and strengthened governance requirements for crypto exchanges and licensees.  

- **AML and Sanctions**: Updated to align with local and global developments, emphasizing the application of anti-money laundering rules to regulated crypto activities and the use of new regulatory technologies.  

In late 2022, the FSRA launched a new regulatory framework for Fiat-Referenced Token (FRT) issuance, effective December 5, 2022. This framework established FRT issuance as an independent regulated activity, reducing regulatory burdens for issuers while enhancing financial stability and investor protection. Additionally, the FSRA initiated a consultation (Consultation Paper No. 11 of 2024) proposing revisions to its digital asset regulatory framework, reflecting growing regulatory focus on the sector.  

On November 2, 2023, Abu Dhabi introduced the world’s first regulatory regime for Distributed Ledger Technology (DLT) foundations. ADGM’s "Distributed Ledger Technology Foundations Regulations 2023" provides a pathway for blockchain projects, Decentralized Autonomous Organizations (DAOs), and other entities to register as legal entities, enabling them to conduct token issuance and related activities while adhering to governance and transparency requirements.  

On June 10, 2025, the FSRA announced immediate amendments to its digital asset regulatory framework . Key changes included streamlining the process for recognizing Virtual Assets (VAs) as Accepted Virtual Assets (AVAs) within ADGM, revising capital requirements and fees for VA firms, introducing product intervention powers for virtual assets, and formalizing the prohibition of privacy tokens and algorithmic stablecoins in ADGM . The amendments also expanded the investment scope for venture capital funds .  

With its clear regulatory framework, Abu Dhabi and the broader UAE have emerged as key players in the global stablecoin and digital asset market. ADGM has become a central hub for exchanges, custodians, and other crypto-related firms seeking structured regulation.  

### 2. A Tax Haven for Crypto  

For individual crypto professionals, Abu Dhabi offers tax-free status: no taxes are levied on crypto trading, staking, mining, or sales, and there is no personal income tax or capital gains tax on digital assets. For crypto businesses, ADGM has implemented a 50-year tax exemption policy since 2004: firms within the zone pay no taxes on profits, capital, or assets, employees enjoy tax-free income, 100% foreign ownership is permitted, and there are no restrictions on capital repatriation. While the UAE introduced a 9% federal corporate tax in 2023, crypto firms with annual taxable income ≤375,000 dirhams (≈USD 100,000) are exempt, significantly reducing initial operating costs for small and medium-sized crypto startups.  

### 3. Sovereign Wealth Fund Involvement in Crypto  

Abu Dhabi is home to major sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, which have deepened their involvement in the crypto sector in recent years through direct investments and strategic partnerships.  

As of June 30, 2025, Mubadala Investment Company held 8,726,972 shares of IBIT (BlackRock’s Bitcoin ETF), with a market value of approximately USD 534 million.  

On April 29, 2025, ADQ (Abu Dhabi’s sovereign wealth fund), conglomerate IHC (IHC.AD), and First Abu Dhabi Bank (FAB.AD) – the UAE’s largest bank by assets – announced plans to launch a new dirham-backed stablecoin (the dirham is the UAE’s official currency). The three entities stated that the stablecoin will be fully regulated by the Central Bank of the UAE.  

## Conclusion  

From a desert to a modern metropolis, and from pearl diving to a crypto paradise, Abu Dhabi has successfully carved out a new development path alongside its oil economy: a global hub for crypto innovation. Through its clear regulatory framework, tax incentives, and sovereign capital leadership, Abu Dhabi has attracted crypto firms worldwide.  

As the global crypto industry continues to evolve, Abu Dhabi’s reputation as a "crypto capital" is set to strengthen, with its regulatory experience serving as a valuable model for the world.  

## Disclaimer  

The views expressed in this article are solely those of the author and do not constitute investment advice from this platform. This platform makes no guarantees regarding the accuracy, completeness, originality, or timeliness of the information provided, nor shall it be liable for any losses arising from the use of or reliance on such information.