The Dubai Financial Services Authority (DFSA) has officially approved XRP as a recognized crypto token for use within the Dubai International Financial Centre (DIFC), a special economic zone in the United Arab Emirates. The approval enables licensed virtual asset firms in the DIFC to incorporate XRP into their services, including custody, trading, and payment solutions.
Fifth Token on DFSA’s Recognized List
According to a notice published by the DFSA on November 2, 2023, both XRP and Toncoin (TON) were added to its list of “Recognized Crypto Tokens.” The list previously included Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), which were approved in November 2022. The DFSA clarified that the recognition takes effect immediately and remains in effect until further notice. Ripple emphasized that XRP is the first virtual asset to be approved through the DFSA’s external application process, distinguishing it from the three earlier tokens that were approved via internal mechanisms.
Strategic Importance for Ripple in the Middle East
Ripple highlighted that this regulatory green light provides legal and regulatory clarity for XRP within the DIFC, allowing institutions located in the zone to leverage the token for faster and more efficient cross-border value exchange. The company established its Middle East and North Africa (MENA) headquarters in the DIFC in 2020, citing Dubai’s forward-looking regulations, extensive network, and reputation as a global financial hub. Today, approximately 20% of Ripple’s customers are based in the MENA region.
Dubai’s regulatory landscape is further shaped by the Virtual Assets Regulatory Authority (VARA), which oversees crypto asset activities in all other zones of the emirate, excluding the DIFC. Together, DFSA and VARA provide a comprehensive regulatory framework that has attracted numerous blockchain and crypto firms to the region.
CEO Brad Garlinghouse Comments
Ripple CEO Brad Garlinghouse stated: “Ripple will continue to double down on its presence in Dubai and we look forward to continuing to work closely with regulators to realize crypto’s full potential.” He noted that the UAE has become one of the most innovative jurisdictions, offering clear regulatory guidance for licensed firms to offer virtual asset services. Industry observers believe this approval could accelerate the adoption of XRP for remittance and settlement among financial institutions in the Middle East, further solidifying Ripple’s position in the global payments ecosystem.