The Dubai Financial Services Authority (DFSA) has approved the XRP Token for incorporation into the virtual asset services provided by firms within the Dubai International Financial Centre (DIFC).
XRP was developed in part by Ripple Labs, who use the open-sourced digital asset for its technological solutions, including RippleNet, a currency exchange network for cross-border payments using XRP. RippleNet provides payout capabilities in over 40 currencies, making it one of the leading providers of blockchain for global payment solutions.
Dubai is a key builder and user of the XRP Ledger and Ripple chose the DIFC as the location for its Middle East headquarters in 2020. Approximately 20% of Ripple’s customers are based in the Middle East and North Africa.
Dubai is fast gaining a reputation as a leading global financial centre. It has become a region of choice for crypto businesses due to Dubai’s bespoke regulator for crypto assets focused on supporting crypto projects and developing the fintech ecosystem within Dubai. Together with the DIFC, Dubai also has the Virtual Assets Regulatory Authority (VARA), established with the stated goal of creating an easy to replicate framework for regulating the crypto industry.
Ripple Labs CEO, Brad Garlinghouse said in a press release:
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. 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.
The announcement comes on the heels of Ripple's flagship event, Ripple Swell, which is set to kick-off in Dubai 8 November. Alya Al Zarouni, COO of the DIFC, will be a keynote speaker at the event, together with Brad Garlinghouse, Ripple President Monica Long, and Hensen Order, CEO of VARA.
XRP joins Bitcoin, Ether and Litecoin as crypto-assets approved by the DFSA. The Dubai listing of XRP unlocks new regional payment options and potentially other virtual asset use cases on the XRP Ledger and will be seen as a key step in the development of RippleNet.
The news marks a continuing upward trend in regulatory successes for Ripple in 2023, with the company also enjoying several victories in its ongoing lawsuits against the U.S Securities and Exchange Commission, with a US Court finding that XRP is not a "security" for the purposes of the US Securities Act.
Written by M Bacina and T Masters