Ripple has secured a DFSA license to offer cross-border crypto payments in the UAE, positioning itself as the first blockchain-enabled payments provider in the Dubai International Financial Center. The license enables Ripple to provide global payment solutions and respond to rising demand in the region. Furthermore, the company is proactively addressing stablecoin regulations in collaboration with UAE’s Central Bank.
On March 13, 2024, Ripple, a blockchain payment provider, announced that it has received full regulatory approval from the Dubai Financial Services Authority (DFSA) to offer cross-border crypto payment services in the United Arab Emirates (UAE). This DFSA license permits Ripple to operate within the Dubai International Financial Center (DIFC), a free-economic zone with its own distinct tax policies and regulations. This culmination follows the company’s announcement of in-principle approval over six months ago in October 2023.
With the newly granted license, Ripple can now deploy its global blockchain-based payment solutions to businesses throughout the UAE. This development is intended to assist financial institutions in leveraging digital assets for practical applications. Ripple CEO Brad Garlinghouse highlighted that the UAE is exceptionally positioned to embrace technological and cryptocurrency advancements due to its proactive leadership and supportive framework in the sector.
Furthermore, Ripple has observed an increasing demand for cross-border payment solutions across the Middle East, extending beyond just crypto-centric firms to include traditional financial institutions. A spokesperson for Ripple indicated that the company is actively working to understand the requirements for stablecoins to comply with forthcoming regulations in the UAE, particularly regarding the Central Bank of the UAE’s guidelines.
Additionally, Ripple aims to ensure the widespread availability of its stablecoin, RLUSD, which is accessible in the UAE via the cryptocurrency exchange CoinMENA. With the DFSA’s endorsement, Ripple becomes the first blockchain-enabled payments provider to operate within the DIFC, according to DIFC CEO Arif Amiri. He expressed excitement about Ripple’s commitment to Dubai, signaling that the license opens up new prospects for Ripple in both the UAE and the wider Middle East and North Africa (MENA) region.
Ripple’s recent acquisition of a DFSA license represents a significant milestone, granting the company the ability to provide cross-border crypto payment solutions in the UAE. This move not only enables Ripple to tap into the growing demand for blockchain technologies in the region but also positions it as a pioneer within the DIFC. The firm’s focus on stablecoin regulations further underscores its commitment to compliance and innovation in the evolving crypto landscape.
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