Ripple, a prominent crypto payment infrastructure provider, has taken a significant step toward establishing a major presence in the United Arab Emirates (UAE) by securing an in-principle financial services license approval from Dubai’s Financial Services Authority (DFSA). This preliminary approval paves the way for Ripple to eventually offer its cross-border crypto payment services in the region.
On October 1, Ripple announced this milestone, signifying its intent to provide fiat and digital asset transfer services in Dubai’s International Financial Center (DIFC), a leading special economic zone. The in-principle approval from the DFSA is a vital step toward obtaining a full license, enabling Ripple to operate within this regulated environment.
Ripple highlighted that this achievement further establishes its standing as a regulated global entity. This approval lays the groundwork for the introduction of Ripple Payments Direct (RPD) in the UAE, a feature designed to enhance seamless cross-border payments. Before achieving a full license, companies in the DIFC, including Ripple, must fulfill specific requirements, such as securing dedicated office space within the zone.
Brad Garlinghouse, Ripple’s CEO, expressed his confidence in the UAE’s supportive regulatory climate, stating, “With its forward-thinking regulatory approach and clear guidance, the UAE is positioning itself as a global leader in this new era of financial technology.”
Ripple aims to be the first blockchain-enabled payment services provider licensed by the DFSA, marking a strategic move to tap into emerging crypto markets across the Middle East, Africa, and South Asia. This effort aligns with the goals of Salmaan Jaffery, Chief Business Development Officer of the DIFC Authority, who emphasized Dubai’s unique role as a global hub: “Dubai’s strategic location and DIFC’s robust legal and regulatory framework make it the ideal hub for international businesses looking to make a lasting impact.”
Despite these promising developments, Dubai’s regulatory environment remains cautious. Recently, on September 26, Dubai’s Virtual Asset Regulatory Authority (VARA) issued stricter guidelines for companies marketing digital asset investments. It now requires firms to include disclaimers on all promotional materials, ensuring investors are adequately informed.
Matthew White, CEO of VARA, emphasized that providing clear and actionable guidance is essential for responsible service delivery in the virtual asset space, demonstrating Dubai’s commitment to fostering a safe and transparent environment for cryptocurrency investments.
Ripple’s journey toward full licensing in Dubai is a testament to the city’s growing status as a leading crypto hub, further cementing the UAE’s ambition to be at the forefront of financial technology innovation.
