Dubai Financial Services Authority Adds XRP and Toncoin to List of Recognized Tokens
The Dubai Financial Services Authority (DFSA) has expanded its recognition of digital assets, adding Ripple (XRP) and Toncoin (TON) to its list of officially recognized tokens.
This development underscores the DFSA’s commitment to creating a conducive regulatory environment for digital assets. The authority introduced cryptocurrency regulations in October 2021, reinforcing them in November 2022, to establish a robust framework for the operation of digital assets within the DIFC.
In late September, the DIFC unveiled its proposal for a Digital Assets Law, signaling a proactive stance toward regulating the burgeoning digital asset space. This initiative also included plans to repeal the 2005 Law of Security and the Financial Collateral Regulations, followed by the enactment of an updated Law of Security that encompasses collateral regulations.
With this official recognition from the DFSA, financial institutions operating within the DIFC, home to over 4,000 companies, are now granted authorization to engage in transactions involving XRP and TON.
Dubai’s regulators have consistently demonstrated their pro-innovation approach, with this announcement as the latest example. @Ripple will continue doubling down in regions where there is regulatory clarity for crypto – a key reason we’re hosting #RippleSwell in Dubai this… https://t.co/PlIj7ubTcg
— Brad Garlinghouse (@bgarlinghouse) November 2, 2023
Ripple’s XRP Receives Official Recognition in Dubai’s DIFC
Notably, as XRP has officially been recognized as a digital asset in the DIFC, this development follows a pivotal moment for XRP in the United States, where it was designated as the sole legally recognized non-security, as affirmed by Judge Analisa Torres’ ruling on July 13th.
Ripple’s strategic focus on Dubai as a hub exemplifies its proactive approach to navigating regulatory challenges. This strategic shift gains prominence against the backdrop of operational hurdles faced in the United States, prompting the exploration of new global avenues.
Ripple CEO Brad Garlinghouse, commenting on the XRP listing, lauded Dubai’s continued approach to the regulation of digital assets, noting its role in “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.”
Ripple Established MENA Headquarters in Dubai’s DIFC, Citing Favorable Regulatory Environment and Financial Ecosystem
In a strategic move in 2020, Ripple identified the Dubai International Financial Centre (DIFC) as the ideal location for its MENA (Middle East and North Africa) headquarters. This decision was underpinned by Dubai’s conducive environment, featuring progressive regulations, an extensive network, and a reputation that nurtures financial sector growth.
Notably, approximately 20% of Ripple’s customer base is situated in the Middle East and North Africa (MENA) region. Ripple is poised to bolster its presence in regions where regulatory clarity for cryptocurrencies prevails. This commitment is exemplified by the decision to host the highly anticipated Ripple Swell conference in Dubai.
Scheduled for November 8–9, Ripple Swell is set to bring together key stakeholders from the financial industry and regulatory sphere. Distinguished speakers include Alya Al Zarouni, COO of DIFC, and Hensen Orser, CEO of VARA.
In addition to its MENA expansion, Ripple has proactively pursued licenses worldwide. This includes obtaining the Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). Furthermore, Ripple is actively engaged in the pursuit of licenses in the UK and Ireland, highlighting its dedication to regulatory compliance and global growth.