Dubai’s Financial Authority Approves XRP as a ‘Recognized Crypto Token’

The Dubai Financial Services Authority (DFSA) has greenlit XRP as a recognized crypto token for use within the Dubai International Financial Centre (DIFC), a significant economic zone. Ripple, the blockchain firm behind XRP, announced this approval, highlighting that licensed virtual asset firms within the DIFC can now integrate XRP into their services. With this approval, institutions in the zone gain access to XRP for facilitating faster and more efficient global value exchange.

XRP Attains Recognized Crypto Token Status In a move signaling greater acceptance and adoption, Ripple revealed that the Dubai Financial Services Authority (DFSA) has granted XRP recognition for utilization within the Dubai International Financial Centre (DIFC). This development offers licensed virtual asset firms operating within the DIFC the opportunity to incorporate XRP into their range of services.

On the same day, the DFSA officially published a

“Notice of crypto token recognition,” announcing the inclusion of XRP and toncoin (TON) into its roster of “Recognized Crypto Tokens.” The approval came into effect immediately upon publication, signifying official acknowledgment and acceptance of XRP’s role within the regulatory framework.

With this endorsement, XRP joins other major cryptocurrencies such as bitcoin (BTC), ether (ETH), and litecoin (LTC) on the DFSA’s list of Recognized Crypto Tokens. Ripple emphasized that the inclusion of XRP stands as a milestone, as it’s the first virtual asset to gain approval under the DFSA’s regime since the authority began accepting external applications.

The strategic choice of Dubai as Ripple’s Middle East and North Africa (MENA) headquarters in 2020 underlines the significance of this approval. Ripple cited Dubai’s progressive regulatory environment, expansive network, and status as a leading global financial hub as key factors driving its decision. Approximately 20% of Ripple’s customer base is located in the MENA region, demonstrating the region’s importance in the company’s growth strategy.

Ripple CEO Brad Garlinghouse expressed his enthusiasm about the approval, emphasizing Ripple’s commitment to expanding its presence in Dubai. He underscored the UAE’s dedication to offering regulatory clarity and guidance, positioning itself as an innovative jurisdiction in the crypto space.

As Ripple continues to navigate regulatory landscapes worldwide, the approval from the Dubai Financial Services Authority marks a significant step forward, signaling broader acceptance and adoption of XRP within the financial industry.

What are your thoughts on the Dubai financial regulator’s approval of XRP as a recognized crypto token? Share your opinions in the comments section below.



Leave a comment

Your email address will not be published. Required fields are marked *