The drop happened as investors took profits soon after the company secured an important regulatory approval in the United Arab Emirates (UAE).
Regulatory Approval Opens UAE Market for Circle
On December 9, Circle Internet received a Financial Services Permission (FSP) license from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
This license allows Circle to operate as a Money Services Provider within Abu Dhabi’s
International Financial Centre. The approval allows Circle to offer regulated payment and settlement services to institutions in the UAE.The ADGM said that Circle’s presence helps build a trusted digital asset system in Abu Dhabi and strengthens the UAE’s position as a global center for regulated digital finance.
The regulatory milestone for Circle follows similar developments in the region. Binance recently got FSRA licenses to provide regulated trading, custody, settlement, and off-exchange services in Abu Dhabi. These steps show the UAE is becoming an important center for regulated digital finance.
Also, the Dubai International Financial Centre (DIFC) recognized USDC and EURC as the first stablecoins under its crypto rules. This move comes after Bernstein analysts believe USDC is in a strong position to become the leading stablecoin network in the world.
Circle Stock Faces Fresh Selling Pressure
Despite the positive regulatory developments, Circle stock experienced profit-taking, closing 1.94% lower at $83.96. In after-market trading, it declined a further 0.88%.
The stock rose more than 10% in the past few days as investors took another look at it. This happened while the wider market stayed uncertain, partly due to concerns around the upcoming FOMC event.
Year-to-date, CRCL stock has dropped more than 27%, erasing earlier gains as selling pressure intensified amid crypto market volatility. Analysts suggest that technical indicators, such as the TD Sequential, signal potential further price declines in the short term.
Circle Strengthens Leadership to Boost MEA Expansion
To lead its growth in the Middle East and Africa (MEA), Circle appointed Saeeda Jaffar as managing director. Jaffar previously worked as a senior vice president at Visa, a global payments company. Jaffar will manage Circle’s partnerships with banks and major companies.
He will also help grow USDC adoption and on-chain payments in the region. Circle’s leadership sees this appointment as an important step toward growing its regulated financial services. It also helps strengthen stablecoin adoption in the UAE and the wider MEA region.
Allaire welcomed Jaffar, saying her experience, strategic thinking, and strong reputation are important for Circle’s growth in the region.
The post Circle Stock Dips After Company Gains Abu Dhabi License appeared first on BitcoinLinux.com.
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Author: coinmaker