Ripple Labs, a cryptocurrency exchange and company, has announced it has received regulatory approval to be a licensed blockchain payment provider in the United Arab Emirates (UAE).
The company revealed it has become the first blockchain-enabled payments provider licensed by the Dubai Financial Services Authority (DFSA) to offer its services across the UAE.
Brad Garlinghouse, CEO of Ripple Labs, commented: “Thanks to its early leadership in creating a supportive environment for tech and crypto innovation, the UAE is exceptionally well-placed to benefit.”
There has been a groundswell of support for crypto adoption coming out of the Middle East and Dubai in particular. The DFSA, alongside the Virtual Assets Regulatory Authority (VARA), have enabled this with a regulatory framework that hands crypto companies licenses under transparent and clear rules and regulations.
This regulatory landscape has caught the attention of major crypto companies such as Crypto.com, Binance, OKX and Bitpanda, who have all received a Virtual Asset Service Provider licence to operate in the UAE.
Dubai customers have now taken a liking to crypto, with the region and the wider UAE becoming one of the biggest emerging crypto markets.
Over the course of July 2023 and June 2024, crypto transactions below $1,000 and between $5,000-$10,000 have increased by 80%. Large-scale transfers have also increased, as well as adoption rates.
Ripple has earmarked the UAE as one of its primary markets for growth. The crypto company said 20% of its global customer base is based in the Middle East.
“We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption,” added Garlinghouse.
The regulatory license in the UAE compliments what is a period of global growth for Ripple. The company’s native cryptocurrency, XRP, was named as a part of Donald Trump’s cryptocurrency reserve designed to help the US become the world leader in crypto.
