Ripple is one step closer in strengthening its Middle East presence after receiving an in principle license from Dubai regulators.
In an announcement made on Oct. 1, the Dubai Financial Services Authority announced that the Blockchain Payments firm had received an approval in principle from DFSA, marking the first stage before receiving a license for full operation.
Ripple, once fully approved by the Dubai International Financial Centre(DIFC), an economic special zone in Dubai, will provide cross-border payments for fiat currencies as well as digital assets.
Ripple aims at becoming the first blockchain payment service provider to be licensed by the DFSA.
The company intends to deploy its enterprise-grade infrastructure for digital assets across all of the UAE once it receives the license.
To obtain a full licence, the company must comply with the DFSA’s requirements, which include securing a space in the DIFC, and hiring locals.
The firm that created XRP stated in the announcement that this milestone will help to strengthen “Ripple’s global footprint” as a regulated company. This license allows residents of Dubai and other United Arab Emirates to use offerings such as Ripple Pay Direct (RPD), to make cross-border transfers.
Brad Garlinghouse praised Ripple CEO Brad Garlinghouse for the UAE’s “forward-thinking” regulatory framework. He said it provided “clear guidelines” to companies that wanted to invest and grow in the UAE.
The UAE will be a global leader in financial technology, he says.
The announcement stated that Dubai would act as Ripple’s strategic hub to penetrate the fast-expanding crypto markets in the Middle East and Africa.
Ripple’s relationship with Dubai has evolved over the years. The latest approval is a continuation of its already existing presence through the DIFC Innovation Hub, announced in August 2024.
Blockchain technology is being used to create real-world apps.
The partnership will create opportunities that are long-lasting for developers of blockchain technology, and contribute to Dubai’s increasing status as a digital finance hub.
The DIFC has also approved the use XRP (Ripple’s native currency) in November 2023.
Licensed virtual assets providers were permitted to include XRP in their products.
Dubai’s crypto regulation
Dubai actively regulates the crypto sector in the last few years. It has granted licenses to major platforms.
OKX Binance and Crypto.com all have full operating licenses in the area. ByBit has received a temporary license to enter the market.
Dubai regulators also have introduced measures for protecting investors. Virtual Asset Service Providers must warn investors of the risks when they market cryptocurrency investments.
Before launching promotional campaigns, these providers should also obtain permission.
Dubai launched its first digital asset risk insurance in September.
The custodial policy protects your holdings against risks like hacking, fraud and damage to the storage system.
The new initiative is designed to increase the safety of crypto in the region for businesses as well as investors.
The post Ripple Secures In-Principle License from Dubai Regulators, Strengthening Middle East Presence may be updated as new developments unfold.