Ripple Gains New Approval to Expand Operations in Dubai

TL;DR

• Ripple has been granted approval to enhance its operations in the Middle East.
• Despite this announcement, XRP’s price remained stable around $0.62, with no significant fluctuations reported in the last 24 hours.

Expansion in Dubai

Ripple has secured in-principle approval from the Dubai Financial Services Authority (DFSA) to extend its operations within the Dubai International Financial Centre (DIFC), marking it as the first blockchain-enabled payment services provider authorized by local regulators.

This approval reinforces Ripple’s commitment to enhancing its presence in the Middle East, especially after establishing its regional headquarters in Dubai back in 2020. The company asserted that regulatory clarity in the United Arab Emirates (UAE) has positioned it as a crucial trade hub, enabling access to rapidly growing markets across the Middle East, Africa, and South Asia.

“The robust regulatory framework set up by the DFSA, along with other regulators in the region, has nurtured an environment where innovative crypto enterprises can flourish,” stated the announcement.

Salmaan Jaffery (Chief Business Development Officer of the DIFC Authority) expressed his optimism regarding Ripple’s ongoing expansion in the region.

The recent approval aligns with the company’s strategy to collaborate with global policymakers and regulators “to incorporate compliant blockchain and crypto technologies that enhance the existing financial infrastructure.” Currently, Ripple holds over 55 licenses globally, including from the New York Department of Financial Services (NYDFS) and the Monetary Authority of Singapore (MAS).

Reece Merrick (Ripple Managing Director, Middle East and Africa) termed this development as a “key moment” for the company’s engagement in the region.

“More than 20% of Ripple’s global clientele resides in the UAE, and as we expand our operations and offerings, we are responding to the rising demand for more efficient and economical cross-border payment solutions. We are eager to support the UAE’s ambition to become a premier global crypto and fintech hub by promoting the institutional adoption of blockchain technology,” he remarked.

Previous Partnership in Dubai

Earlier this August, Ripple announced its initial strategic partnership with the Dubai International Financial Center (DIFC). This collaboration aimed primarily at facilitating crypto adoption among emerging businesses and showcasing the advantages of blockchain technology to companies in the zone.

The DIFC serves as a specialized economic zone aimed at providing a financial gateway for enterprises operating in the Middle East, Africa, and South Asia. It operates under the supervision of local regulators and guarantees clients zero taxes on corporate income and profits for a period of 50 years.

At the time, Ripple’s CEO Brad Garlinghouse remarked on the UAE’s standing as one of “the most advanced jurisdictions globally” concerning regulatory transparency.

“Our collaboration with the DIFC Innovation Hub will drive the adoption of blockchain technology across the region, as the XRPL continues to be a leading blockchain for start-ups and scale-ups developing real-world applications,” he added.

XRP Price Forecast

Ripple’s native cryptocurrency has largely remained unaffected by the company’s further expansion in the Middle East. It currently trades at around $0.62 (according to CoinGecko’s data), reflecting a slight dip of less than 1% compared to the previous figure on September 30.

However, many analysts are optimistic that October could be a strong month for XRP. For those interested in exploring some recent intriguing forecasts, you can read our detailed article here.