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, the price of XRP remained stable around $0.62, with no significant changes seen in the last 24 hours. The expansion in Dubai

Ripple received principal approval from the Dubai Financial Services Authority (DFSA) to expand its operations in the Dubai International Financial Center (DIFC). It thus became the first blockchain-enabled payment service provider licensed by the local regulator.

The green light doubles Ripple’s intentions to strengthen its presence in the Middle East following the establishment of its regional headquarters in Dubai in 2020. The company stated that regulatory clarity in the United Arab Emirates (UAE ) has allowed it to emerge as the commercial center it is today. with access to fast growing markets in the Middle East, Africa and South Asia.

“The comprehensive regulatory framework established by the DFSA, along with other regulators in the country, has created an environment where innovative crypto companies can thrive,” the announcement said.

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

The latest approval is part of the company’s strategy to work with lawmakers and regulatory bodies globally “to integrate compatible blockchain and cryptocurrency technologies that complement the existing financial system.” To date, Ripple has more than 55 licenses worldwide, including those from the New York Department of Financial Services (NYDFS) and the Monetary Authority of Singapore (MAS).

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

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

The previous partnership in Dubai

Ripple revealed its initial strategic partnership with the Dubai International Financial Center (DIFC) in August this year. The main goal of the deal was to drive cryptocurrency adoption among early-stage companies and introduce the benefits of blockchain technology to businesses in the area.

The DIFC is a special economic area established as a financial center for companies operating in the Middle East, Africa and South Asia. It is overseen and monitored by the local regulator and offers customers a 50-year guarantee of zero tax on business income and profits.

Speaking on the matter at the time, Ripple CEO Brad Garlinghouse ranked the UAE among “the most advanced jurisdictions in the world” when it comes to providing regulatory clarity.

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

XRP Price Outlook

Ripple’s native token was largely unaffected by the company’s subsequent expansion into the Middle East. It is currently trading around $0.62 (according to CoinGecko data), which represents a slight decrease of less than 1% compared to the figure witnessed on September 30.

XRP Price, Source: CoinGecko

Still, many analysts believe October could be a big hit for XRP. Those who want to explore some of the more interesting predictions of late can check out our detailed article here.

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