The Dubai Financial Services Authority (DFSA) has approved Ripple’s XRP token for use within the Dubai International Financial Centre (DIFC).
As a result, licensed virtual asset firms within the DIFC can now incorporate XRP into their virtual asset services.
By this approval, XRP has become the first virtual asset to be approved by the regime, since the agency opened up external applications, joining BTC, ETH, and LTC which were approved by the former regime.
The approval also brings legal and regulatory clarity that XRP needs to enable institutions in the DIFC to use the token to accelerate faster, more efficient global value exchange.
Ripple is a leading payment company that facilitates near instant payment settlement across borders. The company uses XRP as its native token to provide liquidity for value exchange in the process.
With this approval of XRP in Dubai, many more institutions will find the token more appealing, not just in Dubai and the UAE but in the world at large, since the country has demonstrated leadership in global crypto innovation. Commenting on the approval, Ripple CEO Brad Garlinghouse said:
“Dubai continues to demonstrate global leadership when it comes to the regulation of virtual assets and nurturing innovation. It’s refreshing to see the DFSA encourage the adoption and use of digital assets such as XRP to position Dubai as a leading financial services hub intent on attracting foreign investment and accelerating economic growth,” he said.
“Ripple will continue to double down on its presence in Dubai and we look forward to continuing to work closely with regulators to realize crypto’s full potential,” he added.
Dubai’s Leadership in Crypto Development
Dubai is one of the most crypto-friendly places in the world, and clearly intends to stay ahead with crypto innovation. Although the regulators in the city take customer protection very seriously, they don’t do so at detriment of crypto innovation.
The agency for regulation of virtual assets, the virtual assets regulatory authority (VARA) for example has approved many deserving crypto companies that applied for operating licenses in the city this year. Among them are leading crypto exchanges Binance, Bybit, Crypto.com, as well as Coinbase.
The listing of XRP by the DFIC is also hardly surprising as 20% of Ripple’s customers are in the MENA region, and Dubai has shown commitment to developing the crypto industry with its crypto-friendly regulations.
It is because of this regulatory friendliness that Ripple has organized its flagship event known as Ripple Swell, which is to come up in Dubai on 8-9 November. The gathering will bring together influential financial industry and regulatory personalities.
The event will have The DIFC’s Chief Operating Officer Alya Al Zarouni take the main stage, as will VARA’s CEO Hensen Orser, alongside other national and global thought leaders, decision-makers, and policymakers from the worlds of fintech, finance and crypto.
A Big Win for ripple
Both Ripple and XRP have faced several regulatory challenges in the U,S as regulators cracked down on the crypto industry. Fortunately, Ripple won against the securities and exchange commission (SEC) earlier this year, marking a big turn for the company.
It is this victory at the court that may have led to the listing of XRP in Dubai, and this has potential to unlock new regional payments and other virtual asset use cases on the XRP Ledger, which will open doors to new opportunities.