Ripple’s XRP is set to capture increased market interest following its recent approval from Dubai regulators, placing it alongside prominent cryptocurrencies such as Bitcoin, Ethereum, and Litecoin within the Dubai International Financial Center (DIFC). This announcement marks a triumph for Ripple after winning its legal battle with the SEC, offering enhanced legal certainty for XRP and potentially bringing a surge in its value.
First Virtual Asset Approved by DFSA for DIFC Use
According to a recent press release, Ripple made a significant regulatory milestone as the Dubai Financial Services Authority (DFSA) sanctioned the use of XRP within the Dubai International Financial Center (DIFC). With this move, XRP becomes the first virtual asset to receive approval from the DFSA following the authority’s call for external applications.
The green light from the DFSA enables licensed virtual asset firms within the DIFC to expand their offerings to include XRP, placing it in the ranks of previously sanctioned assets like BTC, ETH, and LTC within the DFSA’s virtual asset framework.
This latest approval is set to enhance XRP’s legal and regulatory framework within the DIFC, granting financial institutions a new asset for initiating quick and cost-effective global transactions.
Brad Garlinghouse, CEO of Ripple, 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.”
Dubai And Ripple Aim For A Friendly Approach
The United Arab Emirates is heading toward creating a regulatory environment that brings clarity and direction for licensed entities to offer virtual asset services. Through the DFSA’s robust framework within the DIFC, the regulator is dedicated to boost the growth of the crypto market, payment processing, and fintech sectors in Dubai. This extends to guiding enterprises in establishing their presence in the free zone.
Dubai introduced the Virtual Assets Regulatory Authority (VARA) the previous year, with a mandate to protect investors, ensure robust risk management, and fuel technological innovation.
The inclusion of XRP among Dubai’s sanctioned virtual assets may expand the infrastructure for regional payment systems and diverse XRP Ledger applications. Ripple’s choice of the DIFC for its MENA base in 2020 reflects Dubai’s friendly regulatory policies, its vast networking, and its reputation as a top-tier global financial hub.
With approximately 20% of Ripple’s clientele concentrated in the MENA region, it’s clear the area is becoming a crucial crypto-market player. This trend is underscored by leading exchanges like Binance, Coinbase, and India’s market leader WazirX setting their sights on Dubai for the expansion of their future operations.