Ripple recently received approval from the Dubai Financial Services Authority (DFSA) to expand its payment services in the United Arab Emirates (UAE).
This approval allows Ripple to offer seamless cross-border payment solutions, such as Ripple Payments Direct (RPD), from its base at the Dubai International Financial Centre (DIFC).
It strengthens Ripple’s global presence as a regulated company and aligns with its mission to provide faster and more cost-effective payment services for businesses.
Ripple’s CEO, Brad Garlinghouse, emphasized that blockchain and crypto technologies are here to stay. He noted that the UAE’s forward-thinking regulatory approach has made it a global leader in financial technology. With this approval, Ripple becomes the first blockchain-powered payment service licensed by the DFSA.
The UAE’s clear regulatory framework and strategic location as a global trade and finance hub are key reasons Ripple is investing in the region.
Ripple is also expanding partnerships, such as its recent collaboration with the DIFC Innovation Hub, to support blockchain innovation and connect developers with the region’s tech and venture capital networks. Additionally, Ripple renewed its partnership with NYU Abu Dhabi, funding blockchain research and student initiatives.
This move is part of Ripple’s broader strategy to collaborate with regulators worldwide, ensuring compliance while advancing blockchain technology in financial services.
Ripple already holds over 55 licenses globally, including from Singapore, New York, and Ireland. The company’s expansion in the UAE aims to meet the growing demand for efficient and cost-effective international payment solutions, especially since over 20% of its global customer base is in the region.
Ripple has faced regulatory challenges in the US. Its ongoing case with the U.S. Securities and Exchange Commission (SEC) began in December 2020, when the SEC filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen.
The SEC alleges that the company sold XRP, a cryptocurrency, as an unregistered security, raising over $1.3 billion and violating U.S. securities laws.
Read also: Ripple begins testing Ripple USD on the XRP Ledger and on Ethereum
Ripple has consistently denied the charges, asserting that XRP is a digital currency, not a security, and therefore should not fall under the SEC’s jurisdiction. Ripple also argues that the SEC failed to provide clear guidance on whether cryptocurrencies like XRP could be classified as securities.
In 2023, Ripple achieved a partial victory when a U.S. district court ruled that XRP was not a security when sold on public exchanges, though sales to institutional investors were deemed securities.
This mixed ruling was seen as a landmark decision for the crypto industry but left some aspects of the case unresolved. The case continues to evolve, with both sides seeking further clarifications or settlements.
