Dubai Financial Authority Approves XRP as ‘Recognized Crypto Token’ – Dubai’s financial regulatory body, the Dubai Financial Services Authority (DFSA), has granted official recognition to XRP as a cryptocurrency within the Dubai International Financial Centre (DIFC), a designated economic zone. Ripple disclosed last week that this approval enables licensed virtual asset companies operating within the DIFC to integrate XRP into their virtual asset services.
Furthermore, institutions situated in this zone can now harness XRP to expedite global value exchange with increased efficiency. Ripple described: “Licensed virtual asset firms within the DIFC will now be able to incorporate XRP into their virtual asset services.” Last week, the Dubai Financial Services Authority also published a “Notice of crypto token recognition,” announcing that XRP and toncoin (TON) have been added to its list of “Recognized Crypto Tokens.”
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The regulator clarified: “The recognition comes into effect from the date of this Notice and remains in effect until further notice.” The Dubai Financial Services Authority (DFSA) has expanded its roster of Recognized Crypto Tokens to encompass five cryptocurrencies: bitcoin (BTC), ether (ETH), litecoin (LTC), toncoin (TON), and XRP. Notably, TON and XRP earned their inclusion on November 2, whereas BTC, ETH, and LTC were added on November 1, 2022.
It’s worth mentioning that XRP holds the distinction of being the first virtual asset to receive approval from the regime since the DFSA began accepting external applications. “XRP joins BTC, ETH, and LTC as the assets previously approved under the DFSA’s virtual assets regime,” Ripple detailed on Thursday, noting: “XRP now stands to benefit from legal and regulatory clarity in the DIFC, and will be available for use by institutions located in the DIFC to accelerate faster, more efficient global value exchange.”
Ripple further explained that the company chose the DIFC as the location for its Middle East and North Africa (MENA) headquarters in 2020 “due to Dubai’s innovation-forward regulations, expansive network, and reputation as a leading global financial centre.” The firm noted that approximately 20% of its customers are based in this region.
Another independent regulator in Dubai, the Virtual Assets Regulatory Authority (VARA), has also been active in the crypto space. VARA is in charge of overseeing and regulating crypto assets and crypto activities in “all zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre,” its website states.
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Commenting on the approval of XRP by the Dubai Financial Services Authority, Ripple CEO Brad Garlinghouse shared: “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.” “The UAE has fast become one of the most innovative jurisdictions intent on offering regulatory clarity and guidance for licensed firms to offer virtual asset services,” Ripple emphasized.