Ripple has received a regulatory license from the Dubai Financial Services Authority (DFSA) to launch its compliant crypto payment services within the Dubai International Financial Centre (DIFC). Interestingly, the approval makes Ripple the first blockchain-enabled payments provider to operate under DFSA oversight in the region.
Ripple Gains DFSA License in UAE
With its latest license, the company claims its “compliance-first global payments product” will now be accessible to UAE-based businesses. According to an official press release, the move will enable its clients to harness the benefits of blockchain technology for cross-border transactions.
Ripple claims its entry into the Middle East highlights its commitment to regulation and market expansion. While commenting on UAE’s progressive crypto environment, its Chief Executive Officer, Brad Garlinghouse, remarked:
“We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption. Thanks to its early leadership in creating a supportive environment for tech and crypto innovation, the UAE is exceptionally well-placed to benefit.”
The company boasts that its services will address traditional inefficiencies, including high transaction fees, prolonged settlement periods, and opacity in cross-border transfers. It believes its solutions will attract clients in the Middle East who prioritize faster payment processing and settlements.
Not the First Regulatory License Amid Hurdles
Notably, this recent regulatory milestone adds to the company’s expanding portfolio of over 60 approvals worldwide. The firm’s compliance track record includes authorities such as the Monetary Authority of Singapore, the New York Department of Financial Services, and the Central Bank of Ireland, along with multiple licenses across U.S. states.
Nonetheless, the company also faces regulatory hurdles. In 2020, the U.S. SEC initiated a lawsuit against Ripple Labs, alleging that the company’s sale of XRP tokens constituted an unregistered securities offering. Despite the regulator’s dismissal of various crypto-related lawsuits, Ripple’s case is still ongoing, with reports suggesting that the legal battle is nearing its end.
Meanwhile, according to data from the aggregator platform CoinMarketCap, Ripple’s RLUSD stablecoin, launched in December, has already exceeded $130 million in market capitalization. At press time, its affiliated crypto XRP has experienced a modest price increase, reflecting over 3% gains within the last 24 hours.
