Today, Ripple announced that it has obtained in principle approval from the Dubai Financial Services Authority for a license for crypto financial services.
We’re delighted to have secured in-principle approval of a financial services license from Dubai Financial Services Authority, unlocking our end-to-end managed payments services in the UAE.
https://t.co/4zq8YPlgaG
— Ripple (@Ripple) October 1, 2024
Thanks to this license, the crypto company will be able to provide end-to-end managed payment services in the United Arab Emirates.
The new crypto license of Ripple in Dubai
The Dubai Financial Services Authority (DFSA) is the financial regulatory agency of the special economic zone of Dubai, in the United Arab Emirates (UAE).
Thanks to the authorization from the DFSA, Ripple will be able to expand its services within the Dubai International Financial Centre (DIFC).
In particular, it will allow the introduction in the UAE of seamless cross-border payment services such as Ripple Payments Direct (RPD).
The company now declares to be ready to launch its enterprise-level infrastructure for digital assets to a broader customer base in the United Arab Emirates, and that this expansion is in line with Ripple’s mission to provide businesses with faster, more convenient, and efficient cross-border payment solutions.
The strategy of Ripple is precisely to collaborate with regulators and policymakers around the world, to integrate blockchain and crypto technologies to complement the existing financial system.
Dubai and the United Arab Emirates
Dubai is not the capital of the United Arab Emirates (that is Abu Dhabi), but it is the largest and most important city of the Arab state.
For some time now, it has also been known for being one of the main crypto hubs in the world, and certainly the main one in the Middle East.
Also thanks to its Dubai Financial Services Authority, which grants licenses to attract companies, especially crypto companies, to the territory, and its Dubai International Financial Centre, it is becoming a global reference point, so much so that, for example, it is precisely there that Telegram has moved its legal headquarters.
The key point is precisely the crypto regulation, and the fact that by granting state licenses, the crypto companies that obtain them can operate in the country, and in the world, in full compliance with the laws in place.
It is not at all a coincidence that the American company Ripple has decided to also apply for a license from the DFSA in the UAE, given that being present in that market is now important for large crypto companies.
The company also stated that it is the first ever, among blockchain-based payment service providers, to obtain the DFSA license.
The expansion of Ripple in the crypto hub of Dubai
The company intends to expand its presence in the Middle East, after the creation of its local office in Dubai in 2020, and the DFSA license goes precisely in this direction.
In particular, they state that the regulatory clarity of the United Arab Emirates, and the strategic position as a global hub for financial and commercial services with access to rapidly growing markets in the Middle East, Africa, and South Asia, were the key factors in the company’s decision to invest in the region.
According to Ripple, the comprehensive regulatory framework by the DFSA has helped create an environment where innovative crypto companies can thrive.
The company has also established a partnership with the DIFC Innovation Hub to strengthen blockchain innovation and digital assets in the United Arab Emirates. The DIFC network now includes more than a thousand technology companies, digital labs, and venture capital entities, and Ripple has also renewed its strategic partnership with NYU Abu Dhabi through the University Blockchain Research Initiative (UBRI).
Now the company holds over 55 licenses worldwide, including the Monetary Authority of Singapore (MAS), the New York Department of Financial Services (NYDFS), and the Central Bank of Ireland (CBI).
XRP Price Analysis
The price of the cryptocurrency XRP has not been affected by this news, also because its price in the last seven days had already increased by 7%, reaching +13% in the last thirty days.
Furthermore, XRP often now travels separately from Ripple, not so much because it does not have a role within the company’s ecosystem, but because it has a fairly stable trend in the crypto market.
Suffice it to say that the current price is only 20% higher than that of a year ago, and that it is perfectly in line with that of the beginning of the year.
The comments
The Chief Business Development Officer of the DIFC Authority, Salmaan Jaffery, stated:
“At DIFC, we are committed to promoting a future-focused financial ecosystem that supports innovation and growth. Dubai’s strategic position and DIFC’s solid legal and regulatory framework, based on two decades of experience, make it the ideal hub for international companies seeking to make a lasting impact. We are proud to welcome Ripple’s continued expansion in DIFC as they work to drive the growth of blockchain technology in the region”.
The CEO of Ripple, Brad Garlinghouse, added:
“Blockchain and crypto technologies are here to stay. With its forward-thinking regulatory approach and clear guidance for innovative companies looking to invest and grow, the United Arab Emirates is positioning itself as a global leader in this new era of financial technology”.