Ripple has just secured full regulatory approval from the Dubai Financial Services Authority (DFSA) to offer blockchain-powered payment solutions.
The approval makes Ripple the first payments provider of its kind licensed to operate within the Dubai International Financial Centre (DIFC) and marks a major expansion in the Middle East.
With the DFSA license, the company is poised to tap into the UAE’s thriving $40 billion cross-border payments market.
“Thanks to its early leadership in creating a supportive environment for tech and crypto innovation, the UAE is exceptionally well-placed to benefit,” Brad Garlinghouse, Chief Executive Officer of Ripple, said in the Thursday announcement.
The latest approval follows Ripple’s in-principle DFSA license approval in October 2024, which allowed the company to start offering its services in the DIFC, a key financial zone for global companies.
Ripple did not immediately respond to Decrypt’s request for comment.
The blockchain’s regional presence has steadily increased since it set up its headquarters in the DIFC in 2020, with nearly 20% of its global customer base now based in the Middle East.
In November 2023, the firm hit a milestone by securing DFSA approval for XRP, allowing licensed firms in the DIFC to incorporate the crypto into their services.
The Ripple-linked crypto became the first virtual asset to be approved by the DFSA, joining Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) on the list of approved assets.
The Middle East and North Africa (MENA) region accounted for 7.5% of global crypto transaction volume between July 2023 and June 2024, blockchain analysis firm Chainalysis’s report noted.
The report highlighted the UAE’s rising position as a global crypto hub, driven by regulatory clarity and a forward-looking stance on digital asset technology.
With the DFSA license, Ripple’s global regulatory approval count now exceeds 60, including a Major Payments Institution license from the Monetary Authority of Singapore (MAS) and the New York Department of Financial Services (NYDFS) Trust Charter, among others.
The fourth biggest crypto was last trading hands for $2.25, up just over 3% in the last 24 hours, according to CoinGecko.
Ripple’s Legal Battle with the SEC
Amid its expansion in the Middle East, Ripple continues to face a legal challenge from the U.S. Securities and Exchange Commission (SEC), which maintains XRP qualifies as an unregistered security.
Ripple disputed this claim, and in 2023, a district court ruled in Ripple’s favor for XRP sales to retail investors on exchanges.
However, Ripple was fined $125 million for institutional sales. The company argued that the regulatory ambiguity around digital assets at the time should preclude penalties.
With changes in SEC leadership under the Trump administration, experts believe a more favorable resolution for Ripple may be on the horizon.
Edited by Stacy Elliott.
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