The world football governing body has blocked the Rojiblancos from bringing in new players throughout 2017 after upholding a ban put in place for breaching the rules over the transfer of foreign players under the age of 18.
Atletico continued their impressive start to the campaign by overcoming Sevilla 2-0 at the Wanda Metropolitano on Saturday afternoon, however, lifting them up to second place in the table after six games.
Simeone believes that his squad has improved in quality as a result of the ban, as he has been given a chance to get the best out of those currently at the club.
"We have turned a negative situation into a positive one," he told reporters. "Not being able to sign has made us focus on making the players that we have even stronger: Thomas [Partey], Luciano [Vietto], Lucas [Hernandez], [Angel] Correa. That has given us the chance to compete well. There is more competition for places now."