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Ripple, a prominent player in enterprise blockchain and cryptocurrency solutions, has announced that the Dubai Financial Services Authority (DFSA) has granted approval for the digital asset XRP to be used within the Dubai International Financial Centre (DIFC). This approval allows licensed virtual asset firms operating within the DIFC to integrate XRP into their virtual asset services.
Notably, XRP is the first virtual asset to receive approval under the DFSA’s virtual assets regime since the DFSA started accepting external applications. XRP now joins Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) as one of the assets approved under the DFSA’s regulatory framework for virtual assets. This regulatory clarity provides a solid legal foundation for XRP within the DIFC, enabling institutions located in the DIFC to facilitate faster and more efficient global value exchange.
The United Arab Emirates (UAE) has emerged as a forward-thinking jurisdiction dedicated to offering clear regulations and guidance for licensed firms offering virtual asset services. The DFSA’s comprehensive regulatory framework for the DIFC demonstrates its commitment to the long-term development of the crypto, payments, and fintech ecosystem within Dubai. Additionally, Dubai established the Virtual Assets Regulatory Authority (VARA) last year to safeguard investors, maintain robust risk management, and foster innovation.
Brad Garlinghouse, CEO of Ripple, expressed his enthusiasm for Dubai’s progressive approach to virtual asset regulation, emphasizing the region’s goal of becoming a prominent financial services hub, attracting foreign investment, and driving economic growth. Ripple is dedicated to expanding its presence in Dubai and collaborating closely with regulators to unlock the full potential of cryptocurrencies.
The approval of XRP by Dubai offers the potential to unlock new regional payment solutions and various virtual asset use cases on the XRP Ledger. Ripple chose the DIFC as the location for its Middle East and North Africa (MENA) headquarters in 2020 due to Dubai’s innovative regulatory environment, extensive network, and its status as a leading global financial center. Approximately 20% of Ripple’s customer base is situated in the MENA region.
This announcement coincides with the upcoming Ripple Swell event, scheduled to take place in Dubai on November 8-9. The event, known for bringing together influential voices from the financial industry and regulatory spheres, is set to feature key figures such as DIFC’s Chief Operating Officer Alya Al Zarouni and VARA’s CEO Hensen Orser, along with national and global thought leaders, decision-makers, and policymakers from the fintech, finance, and cryptocurrency sectors.
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