Ripple Secures Approval from the DFSA

Ripple has successfully obtained complete approval from the Dubai Financial Services Authority (DFSA) to provide regulated cryptocurrency payment services in the Dubai International Financial Centre (DIFC).

This achievement makes Ripple the inaugural blockchain-powered payment provider authorized by the DFSA, thereby greatly expanding its operational footprint in the Middle East.

This recent milestone follows Ripple's initial financial services approval from the DFSA secured in October. Having established its regional headquarters in Dubai since 2020, Ripple continues to enhance its presence in a locale distinguished for its regulatory transparency and supportive fintech ecosystem.

The DFSA license positions Ripple to deliver global payment solutions to enterprises within the UAE, effectively solidifying its status as a reliable partner for financial institutions eager to utilize blockchain technology to enable quicker and more economical transactions.

“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,” stated Ripple CEO Brad Garlinghouse in a recent press release.

Dubai has indeed positioned itself as a global center for blockchain and fintech advancements, holding a $400 billion international trade market. The UAE has witnessed rising interest from both crypto-focused enterprises and traditional finance (TradFi) institutions seeking solutions to address inefficiencies prevalent in cross-border payment systems. Key issues include exorbitant fees, prolonged settlement durations, and opacity in transactions.

“Securing this DFSA license…will empower us to better meet the increasing demand for swift, cost-effective, and transparent cross-border transactions in one of the globe’s major cross-border payments hubs,” emphasized Reece Merrick, Ripple’s Managing Director for the Middle East and Africa.

In a similar vein, His Excellency Arif Amiri, CEO of DIFC Authority, noted that this milestone opens new avenues for growth for Ripple across the region and beyond. Ripple’s regulatory sanction in Dubai contributes to its expanding portfolio of over 60 regulatory licenses worldwide.

Among these accolades include a Major Payments Institution license from the Monetary Authority of Singapore and a Trust Charter from the New York Department of Financial Services. Ripple also possesses a Virtual Asset Service Provider registration from the Central Bank of Ireland and Money Transmitter Licenses across several U.S. states.

Despite these advancements, Ripple is still grappling with a legal dispute against the U.S. SEC (Securities and Exchange Commission). Recent updates suggest that the case may soon reach a resolution, with Ripple's legal representatives negotiating for more favorable conditions following an August 2023 district court ruling.

This judgment, which mandated a $125 million fine, also limited Ripple's capacity to sell XRP to institutional investors. Ripple's legal team argues that the company should not bear repercussions for earlier regulatory ambiguities. This assertion aligns with the SEC's reevaluation of its enforcement posture regarding other crypto entities.

“…Accepting the Torres ruling as it stands would mean that Ripple is essentially agreeing to admit to wrongdoing — but now the SEC itself is seemingly unsure whether any wrongdoing occurred. There’s no real playbook for this kind of thing, which could explain why this case is taking longer to resolve than the rest,” reported crypto journalist Eleanor Terret, citing two well-informed sources.