Ripple, a prominent name in enterprise blockchain and cryptocurrency solutions, has made an announcement regarding the approval of the digital asset XRP for use within the Dubai International Financial Centre (DIFC) by the Dubai Financial Services Authority (DFSA).
This marks a crucial development in the cryptocurrency and blockchain landscape, as licensed virtual asset firms operating within the DIFC can now incorporate XRP into their range of virtual asset services.
This approval is particularly noteworthy as XRP is the first virtual asset to receive approval from the DFSA after it opened up external applications.
XRP now joins the ranks of BTC, ETH, and LTC as assets previously approved under the DFSA’s virtual assets regime.
The United Arab Emirates (UAE) has emerged as a forward-thinking jurisdiction actively promoting regulatory clarity and guidance for licensed firms offering virtual asset services. The DFSA’s comprehensive regime in the DIFC demonstrates the regulator’s commitment to nurturing the long-term growth of the crypto, payments, and fintech ecosystem in Dubai.
This approach not only facilitates innovation but also provides guidance for companies looking to establish a presence in the free zone.
Dubai’s dedication to creating a conducive regulatory environment is further exemplified by the establishment of the Virtual Assets Regulatory Authority (VARA), which plays a crucial role in safeguarding investors, maintaining high-risk assurance levels, and fostering innovation.
In fact, Ripple’s commitment to Dubai is underscored by the company’s decision to establish its MENA headquarters in the DIFC in 2020, primarily due to Dubai’s progressive regulations, extensive network, and reputation as a global financial powerhouse. A significant portion of Ripple’s clients, including SABB, Qatar National Bank, Lulu Financial Holdings, Al-Ansari Exchange, and RAK Bank, are based in Dubai.
