According to Ripple Labs, the Dubai Financial Services Authority (DFSA) has approved the use of its associated digital asset XRP within the Dubai International Financial Centre (DIFC).
XRP License Granted by DIFC
This XRP license means that the DFSA officially recognizes XRP as a digital asset and therefore, permits its incorporation by licensed firms in the region into their crypto service offerings. Markedly, this signifies another major milestone for the XRP ecosystem after the coin became the only legally recognized non-security in the United States following Judge Analisa Torres’ ruling on July 13th.
It is worthy of note that XRP is the latest virtual asset to be approved since the DFSA opened it doors to external applications. Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) were the previously approved digital currencies under the DFSA’s virtual assets regime. Furthermore, this latest development brings XRP before the legal and regulatory clarity offered by the DIFC.
Consequently, the provision of this XRP license would accelerate the adoption of the coin and facilitate expansion of the XRP ecosystem. Per the announcement, it has the potential to unlock new regional payments and other virtual asset use cases on the XRP Ledger.
Favorable Crypto Conditions in Dubai
Ripple has had its eyes on Dubai for a long time, especially since regulators in the United States seemed to be frustrating its operations.
The payment company was very intentional about choosing the DIFC as the location for its MENA headquarters in 2020. Dubai prides itself as one of the few regions that possess favorable conditions like innovation-forward regulations, expansive network and reputation that helps the financial sector thrive.
“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,” Brad Garlinghouse, Ripple CEO said.
Ripple holds other licenses including the Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). Beyond this, the company is currently seeking authorization in form of licenses from the UK and Ireland.
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