The Dubai Financial Services Authority (DFSA) has recognized two additional tokens, XRP and Toncoin (TON), joining Bitcoin, Ether, and Litecoin as recognized tokens within the Dubai International Financial Centre (DIFC). This recognition enables financial institutions within the DIFC to conduct transactions with these tokens. Ripple, whose headquarters in the Middle East and North Africa (MENA) region are in the DIFC, welcomed this development and emphasized its commitment to fostering digital asset adoption in Dubai.
The Dubai Financial Services Authority (DFSA) expanded its list of recognized tokens on November 2, adding XRP and Toncoin (TON) to the roster. These tokens now join Bitcoin, Ether, and Litecoin as officially recognized digital assets within the Dubai International Financial Centre (DIFC).
This recognition paves the way for financial institutions operating within the DIFC, which is home to over 4,000 companies, to engage in transactions involving XRP and Toncoin. Ripple, a blockchain and crypto company, has a notable presence in the DIFC, having opened its Middle East and North Africa (MENA) headquarters in the region in 2020. Approximately 20% of Ripple's customer base is located in the MENA region, highlighting the significance of this development for the company.
Ripple CEO Brad Garlinghouse welcomed the move by the DFSA, emphasizing the role of digital assets like XRP in positioning Dubai as a leading global financial hub. He noted that this recognition by the DFSA encourages the adoption and use of digital assets, ultimately attracting foreign investment and contributing to the acceleration of economic growth in the region.
The DFSA is the regulatory authority for the DIFC and has been actively regulating cryptocurrency activities. It established cryptocurrency regulations in October 2021 and further enhanced these regulations in November 2022. In September, the DIFC proposed a Digital Assets Law, which defines the legal characteristics of digital assets, their proprietary nature, and how they can be controlled, transferred, and managed by interested parties.
Simultaneously, the DIFC proposed the repeal of the 2005 Law of Security and the Financial Collateral Regulations, suggesting an updated Law of Security that encompasses collateral regulations. The proposed digital assets law is aligned with the United Nations Commission on International Trade Law's secured transactions model, with some adaptations. Both proposals were in the consultation phase until November 5.
This development follows the recent passage of the Distributed Ledger Technology (DLT) Foundation Regulations in the Abu Dhabi Global Market, which came into effect on November 1. In Dubai itself, the Dubai Virtual Asset Regulatory Authority was established in March 2022 and gained jurisdiction over the entire emirate and its free trade zones, except for the DIFC. During the same period, a virtual assets law was introduced in the emirate.
(DEREK ANDERSEN, COINTELEGRAPH, 2023)