Dubai Gives XRP Regulatory Approval As SEC Battle Persists
The Dubai Financial Services Authority (DFSA) has given legal clearance to XRP, enabling licensed virtual asset companies based in the Dubai International Financial Centre (DIFC) to offer XRP as part of their virtual asset service offerings.
Suzuki Shillsalot, a cryptocurrency industry watcher, had said that this regulatory certification from Dubai provides an additional layer of support to XRP’s position as a viable digital asset as Ripple continues its current legal struggle with the United States Securities and Exchange Commission (SEC).
The CEO of Ripple, Brad Garlinghouse, expressed his happiness and praised Dubai’s progressive regulatory approach. He emphasized the part the DFSA plays in promoting digital asset usage in the Middle East region.
Ripple Vows To Install Strong Cryptocurrency Market In Middle East
The Middle East and North Africa (MENA) region accounts for almost 20% of Ripple’s customer base, making it an important market to the company. With Dubai’s permission, Ripple is working on having a stronger presence in the MENA area, which will encourage more XRP usage and growth. This action is in line with Dubai’s larger goals of becoming a worldwide center for blockchain technology and digital assets.
In recent years, Dubai has demonstrated a proactive stance towards digital assets and blockchain technology. The emirate has been aggressively investigating blockchain applications in a number of industries, including real estate and finance. The legal acceptance of XRP is indicative of Dubai’s determination to promote innovation and establish itself as a major participant in the region’s digital asset market.
Meanwhile, the United States Security and Exchange Commission (SEC) dropped its ongoing case with Ripple’s top management. Among those off the hook in October are Brad Garlinghouse, the CEO, and Chris Larsen, the Ripple’s co-founder. Investigations show that this will be the third major case the SEC will be losing to Ripple since it launched a crackdown in the cryptocurrency industry.
All Eyes On SEC Lawsuit, Ripple Prepares For Ripple Swell
The announcement by the UAE government clashed with the anticipated Ripple Swell: Ripple’s flagship event slated to be hosted in Dubai starting from 8th-9th November 2023. The said event is expected to draw together important, influential personalities from regulatory sectors in Singapore and London to the global financial industry.
This year’s edition is expected to feature Alya Al Zarouni, Dubai International Financial Centre (DIFC)’s Chief Operating Officer, and Hensen Orser, the VARA CEO. SEC says that the dismissal of the said lawsuit stands pending the court’s approval. This development has caused major cryptocurrency exchanges like Bitstamp, Binance.US, Coinbase, and Kraken to return XRP to its trading floor.
In another similar development, the SEC is currently demanding a $770 million fine from Ripple. According to John Deaton, a pro-XRP attorney, the SEC is trying hard to make an example of Ripple. Deaton termed it a “770 million pound of flesh.” Deaton said he is looking forward to a prolonged legal battle, suggesting January 17th, 2024, as the final judgment. This is also said to be likely to coincide with Coinbase’s oral argument.
However, Judge Analisa Torres has scheduled a deadline for hearing from both Coinbase and SEC. Meanwhile, the UAE’s decision is the first time since the beginning of DFSA’s regime to accept external applications. As of press time, XRP has joined the likes of Litecoin (LTC), Ethereum [ETH], and Bitcoin (BTC) in the rank of the legally approved digital assets in the UAE.
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