DFSA Adds XRP to Its List of Recognised Crypto Tokens

US-based blockchain company Ripple announced that the Dubai Financial Services Authority (DFSA) has approved the use of the digital asset Ripple XRP (XRP) within the Dubai International Financial Centre (DIFC). Virtual asset companies licensed in the region can now incorporate XRP into their virtual asset services.

Stated Ripple in its latest announcement, XRP is the first approved virtual asset under the regime since the DFSA opened up external applications, and it will join BTC, ETH, and LTC previously approved under the DFSA's virtual assets regime as regulated, compliant digital assets in the region.

Brad Garlinghouse, CEO of Ripple, said: "Dubai continues to demonstrate global leadership when it comes to the regulation of virtual assets and nurturing innovation. It's refreshing to see the DFSA encourage the adoption and use of digital assets such as XRP to position Dubai as a leading financial services hub intent on attracting foreign investment and accelerating economic growth. Ripple will continue to double down on its presence in Dubai and we look forward to continuing to work closely with regulators to realize crypto's full potential."

Earlier last month, Ripple secured Major Payments Institution (MPI) license in Singapore​, making its XRP a locally regulated digital payment token.

The development of digital assets is still suffering. According to the Q3 2023 XRP Markets Report published by Ripple at the end of October, the impact of frequent hacking attacks and online scams, coupled with continued volatility and uncertainty in traditional markets, these factors drove trading volumes to some of the industry's lowest levels. BTC volumes reached a three-year low of $1-2B a day, and correspondingly, XRP volumes neared a four-year low of $300-400M a day.

Previously, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against two Ripple executives, saying that XRP is a kind of security and should be subject to the relevant provisions of securities laws. In July of this year, U.S. District Judge Analisa Torres in Manhattan granted Ripple a partial win in the case in July, finding that sales of XRP on public exchanges were not unregistered securities offerings​. Torres subsequently rejected a request by the SEC to appeal that ruling.