Ripple Strengthens its Presence in Dubai With a New Approval

TL;DR

• Ripple received approval to boost its operations in the Middle East.
• Despite the news, XRP’s price remained steady around $0.62, with no significant change noted in the past 24 hours.

The Expansion in Dubai

Ripple secured in-principal approval from the Dubai Financial Services Authority (DFSA) to expand its operations within the Dubai International Financial Centre (DIFC). Thus, it became the first blockchain-enabled payment services provider licensed by the local regulator.

The greenlight doubles down on Ripple’s intentions to strengthen its presence in the Middle East following the establishment of its regional headquarters in Dubai in 2020. The company claimed regulatory clarity in the United Arab Emirates (UAE) has allowed it to emerge as the current trade hub with access to fast-growing markets across the Middle East, Africa, and South Asia.

“The comprehensive regulatory framework established by the DFSA, alongside other regulators in the country, has created an environment where innovative crypto firms can thrive,” the announcement reads.

Speaking on the matter was Salmaan Jaffery (Chief Business Development Officer of the DIFC Authority) who welcomed Ripple’s continued expansion in the region. 

The latest approval is part of the firm’s strategy to collaborate with lawmakers and watchdogs globally “to integrate compliant blockchain and crypto technologies that complement the existing financial system.” As of now, Ripple holds more than 55 licenses worldwide, including from the New York Department of Financial Services (NYDFS) and the Monetary Authority of Singapore (MAS). 

Reece Merrick (Ripple Managing Director, Middle East and Africa) described the development as a “pivotal moment” for the company’s operations in the area.

“Over 20% of Ripple’s global customer base is located in the UAE and as we continue to extend our operations and services, we are fulfilling the growing demand for more efficient and cost-effective cross-border payment solutions. We look forward to supporting the UAE’s vision to become a leading global crypto and fintech hub by driving the institutional adoption of blockchain technology,” he added.

The Previous Partnership in Dubai

Ripple disclosed its initial strategic collaboration with the Dubai International Financial Center (DIFC) in August this year. The deal’s primary goal was to boost crypto adoption amongst early-stage companies and introduce the benefits of blockchain technology to firms part of the zone. 

The DIFC is a special economic area established as a financial hub for businesses operating in the Middle East, Africa, and South Asia. It is monitored and supervised by the local regulator and offers clients a 50-year guarantee of zero taxes on corporate income and profits.

Speaking on the matter back then was Ripple’s CEO Brad Garlinghouse who placed the UAE among “the most advanced jurisdictions globally” when it comes to offering regulatory clarity.

“Our partnership with the DIFC Innovation Hub promises to drive the adoption of blockchain technology in the region as the XRPL continues to be a leading blockchain for the region’s start-ups and scale-ups building real use cases,” he added.

XRP Price Outlook

Ripple’s native token remained largely unaffected by the company’s further expansion in the Middle East. It currently trades at around $0.62 (per CoinGecko’s data), representing a mild decrease of less than 1% compared to the figure witnessed on September 30.

XRP Price, Source: CoinGecko

Still, many analysts believe October could be highly successful for XRP. Those willing to explore some of the most interesting forecasts as of late can check our detailed article here.