Ripple has received in-principle financial services license approval from Dubai’s DFSA, bringing it one step closer to offering cross-border crypto payment services in the UAE.
Leading crypto payment infrastructure provider Ripple has received an in-principle license approval from the Dubai Financial Services Authority (DFSA), allowing the company to establish operations in the United Arab Emirates (UAE).
On October 10, Ripple announced that it had received an in-principle license approval from the DFSA, a prerequisite for obtaining a full license in Dubai. Once fully approved, Ripple will be able to provide cross-border payment services for fiat currencies and digital assets in the special economic zone Dubai International Financial Center (DIFC).
The company said in an official statement:
“This milestone significantly strengthens Ripple’s global presence as a regulated entity and enables the launch of seamless cross-border payment services including Ripple Payments Direct (RPD) in the UAE.”
To complete the process, companies within the DIFC, including those in the cryptocurrency space, must meet a number of obligations, such as ensuring they have office space within the region. Upon successful registration, the DIFC will issue a full license to the applicant.
Achieving global reach through licensing
Ripple is committed to becoming the first blockchain payment service provider to be licensed by the DFSA. The company plans to launch its enterprise-grade digital asset infrastructure in the UAE. Ripple CEO Brad Garlinghouse said:
“With its forward-thinking regulatory approach and clear guidance for innovative businesses looking to invest and scale up, the UAE is positioning itself as a global leader in the new era of fintech.”
Ripple also plans to use Dubai as a strategic hub to enter the fast-growing cryptocurrency markets in the Middle East, Africa and South Asia.
Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, highlighted Dubai’s ideal position as a global hub:
“Dubai’s strategic location and DIFC’s strong legal and regulatory framework, built on two decades of experience, make it an ideal centre for international businesses seeking to make a lasting impact.”
Dubai asks investors to be cautious about crypto products
However, Dubai’s digital assets regulator recently unveiled stricter requirements for companies marketing crypto investments in the UAE.
On September 9, Dubai’s Virtual Asset Regulatory Authority (VARA) required all companies promoting digital asset investments in the country to add a disclaimer in their marketing materials.
VARA CEO Matthew White said providing clear, actionable guidance could help virtual asset service providers “provide services responsibly.”