The most recent development in the financial sector sees the Dubai Financial Services Authority (DFSA) giving a formal nod of acceptance to XRP. This is viewed as another stride towards introducing mainstream cryptocurrencies into commercial institutions.
This endorsement intends to facilitate and integrate XRP within special economic zones such as the thriving hub, The Dubai International Financial Centre (DIFC). This announcement nudges us closer toward widespread recognition of cryptocurrencies on an international level.
Echoes of Enthusiasm from Ripple’s Headquarters
The approval granted by DFSA last week breathes life into numerous companies nestled inside DIFC’s boundaries. It opens up opportunities for them to incorporate XRP cryptocurrency into their asset management processes while encouraging trading activities with it.
Today, over 4,000 firms are operational within SEZ according to CEO Brad Garlinghouse. Consequently, he enthusiastically indicated that this will not only fortify Dubai’s pursuit of becoming a worldwide financial powerhouse but also stimulate economic growth through strategic ventures undertaken by these corporations under his leadership at Ripple- headquartered in MENA region serving approximately one-fifth of consumers globally.
Furthermore, synonymous with the company’s ambition to tap into the full potential of cryptocurrency, Garlinghouse committed to amplifying Ripple’s presence in Dubai. The timing is opportune as Ripple Swell, their flagship event, is set for November 8th and 9th in the bustling city.
DFSA Expands Its Recognized Cryptocurrencies
The recent inclusion of Toncoin (TON) alongside XRP on SEZ’s coveted list of “Recognized Crypto Tokens,” aligns them with three other recognized digital currencies. Last year saw Bitcoin (BTC), Ethereum (ETH), and Litecoin LTC making notable entries onto this prestigious list.
Despite having a comparatively lesser market share—XRP at barely above two-and-a-half percent and TON not even clocking one percentage point—their unique propositions successfully place them on par with titans like Bitcoin commanding over half the crypto market space while Ethereum secures around one-sixth part thereof.
Ending Note
Ripple paints quite a contrasting picture when viewed from across continents; facing legal squabbles with Securities & Exchange Commission back home in America vis-à-vis operating smoothly across Middle Eastern markets including UAE. This infamous lawsuit accuses Ripple’s firm of conducting unregistered securities offerings using XRP following which Judge Analisa Torres ruled in July that XRP does not constitute a security.
However, this verdict came with an exception—if sold directly to institutional buyers, the crypto would bear characteristics of securities. Subsequent developments surprisingly steered to the SEC’s abandonment of Garlinghouse and Ripple co-founder Chris Larsen’s private involvement in the complaints.
Even though perceived as a moral win for Ripple, there is still unfinished business between them and the Securities & Exchange Commission—an event set to transpire on November 9th discussing pending charges lined up in court.