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San Francisco-based Ripple announced Tuesday that it obtained in-principle approval from the Dubai Financial Services Authority (DFSA), the regulator responsible for overseeing various financial activities.
With this approval, Ripple said it is set to expand its enterprise-level digital asset solutions and its reach across the UAE.
“Blockchain and crypto technologies are here to stay,” said Brad Garlinghouse, Ripple’s CEO. He added that the UAE is positioning itself as a global leader in a new financial technology era.
Garlinghouse Projects $5 Trillion Crypto Market
Earlier this year, Garlinghouse predicted that the total crypto market cap would surpass $5 trillion by end-2024. He attributed this expansion to the synergy between various macroeconomic influences.
Further, Ripple said it is the first provider to secure a license from the DFSA for blockchain-enabled payment services.
The UAE, particularly Dubai, is establishing itself as a center for fintech and innovation. This gives Ripple a strategic advantage to use Dubai’s location and business climate to access markets in the Middle East, Africa and Asia more effectively.
Contrasting with VARA’s Broader Role in Dubai’s Crypto Landscape
Ripple’s licensing from DFSA contrasts with crypto firms that obtained operational permissions from the Virtual Assets Regulatory Authority (VARA). Specifically, Ripple’s license pertains to activities within the Dubai International Financial Centre (DIFC). This is a special economic zone for cultivating financial services.
On the other hand, VARA’s jurisdiction extends throughout Dubai. It excludes zones like DIFC and ADGM, focusing on regulating all virtual asset operations outside these areas.
While both entities are tasked with overseeing cryptocurrencies and digital assets, DFSA’s strategy involves embedding crypto into the traditional financial framework within the DIFC. In contrast, VARA’s strategy is designed to position Dubai as a leading international hub for virtual assets.
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Nermeen Nabil Khear