Renowned crypto payment system provider, Ripple has received an in-principle regulatory approval from the Dubai Financial Services Authority (DFSA). The firm made the development known on Tuesday, via a post on its official page on X (formerly Twitter).
In the post, Ripple established that the approval is a green light for the firm to set up its presence in the United Arab Emirates (UAE). Further, the firm revealed that the in-principle license approval by the DFSA is an important permission a virtual assets service provider must receive before obtaining a full license in the country.
More so, Ripple is aiming to secure a full license in order to provide its cross-border payment services for fiat and digital assets in the Dubai International Financial Center (DIFC). The DIFC is a special economic zone that will support Ripple towards attaining its desired status of being a force to be reckoned with in this new era of financial innovation.
According to the official statement, Ripple referred to the development as a significant milestone that helped support the company’s reputation as a regulated establishment. Also, the approval will as well aid the introduction of swift and secure cross-border payment services in the UAE.
Meanwhile, as part of its plans, the company intends to provide the Ripple Payments Direct (RPD) in the UAE. Before gaining this access, firms in the DIFC including virtual assets service providers must meet numerous obligations.
As indicated, one of these obligations is the mandatory acquisition of an office space within the economic zone.
How Top Executives Reacted to the Expansion of Ripple into Dubai
However, the CEO of Ripple, Brad Garlinghouse provided insight into the regulatory approval in Dubai. The executive indicated how the firm is aiming to become the first blockchain-centric payment services provider approved by the DFSA.
In addition, the CEO said Ripple intends to release its industry-leading virtual asset infrastructure in the UAE. Similarly, the firm is aiming to use Dubai as a strategic hub to access some of the fast-rising cryptocurrency markets across the Middle East, South Asia, and Africa.
Likewise, the chief business development officer of DIFC, Salmaan Jaffery discussed some of the factors that made Dubai a global hub. The executive highlighted how the strategic location of Dubai, and the DIFC’s comprehensive legal and regulatory framework make the region ideal for international crypto firms.