In another regulatory win for Ripple, the company made a significant announcement regarding the approval of XRP by the Dubai Financial Services Authority (DFSA), which will allow licensed virtual asset firms in the Dubai International Financial Centre (DIFC) to integrate XRP into their virtual asset services.
XRP Integration Authorized
Per the announcement, Dubai has demonstrated its commitment to providing regulatory clarity and guidance to licensed entities operating in the virtual asset space.
The DFSA’s regime for the DIFC has created a “conducive environment” for developing cryptocurrencies, payments, and fintech innovation, attracting foreign investment and driving economic growth.
On this matter, The approval of XRP by the DFSA marks a significant achievement as it becomes the first virtual asset to receive regulatory endorsement under the DIFC regime.
Previously, Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) were the virtual assets approved by the DFSA.
With legal and regulatory certainty established, XRP benefits from increased adoption within the DIFC, facilitating faster and more efficient global value exchange for institutions based in the region.
Ripple’s CEO, Brad Garlinghouse, expressed appreciation for Dubai’s commitment to fostering innovation and regulating virtual assets.
Garlinghouse highlighted the DFSA’s endorsement of XRP as a testament to Dubai’s position as a leading financial services hub, focusing on attracting foreign investment and realizing the full potential of cryptocurrencies.
Moreover, Garlinghouse emphasized Ripple’s commitment to strengthening its presence in Dubai and collaborating closely with regulators to promote the growth of the crypto industry.
The listing of XRP in Dubai holds significant potential for unlocking new regional payment solutions and other virtual asset use cases on the XRP Ledger.
Ripple, recognizing Dubai’s favorable regulatory environment, established its Middle East and North Africa (MENA) headquarters in the DIFC in 2020. Approximately 20% of Ripple’s customers are based in the MENA region, further underscoring the importance of Dubai’s strategic location.
Notably, the announcement coincides with Ripple’s upcoming flagship event, “Ripple Swell,” scheduled to take place in Dubai on November 8-9. The event allows thought leaders, decision-makers, and policymakers to exchange insights and shape the industry’s trajectory.
Ripple Expands Global Operations
On the same note, Ripple recently achieved another milestone by obtaining a major payments institution license in Singapore, solidifying its presence in the Asia-Pacific region.
While Ripple’s progress in various regions has been significant, it faces legal challenges in the United States. Ripple and Coinbase have been engaged in lawsuits with the Securities and Exchange Commission (SEC).
In 2020, the SEC charged Ripple and its founders, alleging illegal sales of XRP without proper registration. However, a landmark ruling in July determined that XRP is not necessarily a security, providing some legal clarity to the ongoing litigation.
Overall, Ripple’s recent announcement of XRP’s approval by the DFSA marks a major milestone in the cryptocurrency’s journey.
With regulatory support and a growing presence in Dubai, Ripple aims to leverage the DIFC’s conducive environment to accelerate the adoption of XRP and drive innovation in the global financial industry.
As of this writing, XRP currently trades at $0.5951, following a failed attempt to consolidate above the $0.600 mark on Tuesday. Presently, the token is down by 0.4% in the past 24 hours and almost 2% in the past 1-hour period.
Featured image from Shutterstock, chart from TradingView.com