The Dubai Financial Services Authority (DFSA) has expanded its repertoire of acknowledged tokens by incorporating XRP and Toncoin (TON) into its list of approved digital assets on November 2. This addition sees these tokens joining the ranks of Bitcoin, Ether, and Litecoin, which have already been recognized within the Dubai International Financial Centre (DIFC).
With this new recognition, financial entities operating within the DIFC, which houses over 4,000 firms, are now permitted to transact using XRP and TON. Ripple, the blockchain-based digital payment network associated with XRP, has had its MENA regional headquarters in the DIFC since 2020.
Ripple has stated that approximately 20% of its clientele is based in the MENA region. Brad Garlinghouse, CEO of Ripple, expressed his enthusiasm:
“We’re encouraged by the DFSA’s progressive stance on digital assets, including XRP, as they work to position Dubai as a formidable global financial hub that is proactive in attracting international investments and fostering economic advancement.”
It is important to note that the DFSA’s jurisdiction is confined to the DIFC. The authority first established a framework for cryptocurrencies in October 2021 and further refined these regulations in November 2022. Additionally, in late September, the DIFC put forward a draft of a Digital Assets Law, simultaneously suggesting the abolition of the 2005 Law on Security and the Financial Collateral Regulations in favor of a revised Security Law that would include modern collateral regulations.
The forthcoming digital assets legislation is intended to clarify the legal nature of digital assets, including aspects of ownership, control, transfer, and legal treatment among interested parties. The proposed Security Law aims to align with the model laws on secured transactions suggested by the United Nations Commission on International Trade Law, with necessary local adjustments. These legislative proposals are currently open for public consultation until November 5.
This regulatory development follows closely behind the Abu Dhabi Global Market’s adoption of Distributed Ledger Technology (DLT) Foundations Regulations, which came into effect on November 1.
Additionally, in the wider Dubai region, the Dubai Virtual Asset Regulatory Authority was established in March 2022, vested with regulatory oversight over all virtual asset activities across the emirate, excluding those within the DIFC. Corresponding to this development, Dubai instituted its own virtual assets law at the same time.
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