March 2, 2024

XRP, TON win approval in Dubai International Financial Centre free trade zone

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The new tokens join the ranks of BTC, ETH and LTC for use by the 4,000-plus companies located in the zone, which is considering new legal measures as well.

The Dubai Financial Services Authority (DFSA) recognized two more tokens on Nov. 2, adding XRP (XRP) and Toncoin (TON) to its list of recognized tokens. They join Bitcoin (BTC), Ether (ETH) and Litecoin (LTC) as coins recognized in the Dubai International Financial Centre (DIFC). 

The tokens’ new status will allow financial institutions in the DIFC to carry out transactions with them. There are over 4,000 companies located in the special economic zone. Ripple opened its MENA headquarters in the DIFC in 2020.

About 20% of Ripple customers are in that region, the company said in a statement. Ripple CEO Brad Garlinghouse said:

“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.”

The DFSA regulates the DIFC alone. It instituted regulations on cryptocurrency in October 2021 and augmented those regulations in November 2022. In late September, the DIFC announced a proposed Digital Assets Law. It also proposed repealing the 2005 Law of Security and the Financial Collateral Regulations and then passing an updated Law of Security that encompassed collateral regulations as well. 

The proposed digital assets law “sets out the legal characteristics of a digital asset, its proprietary nature, how it may be controlled, transferred, and dealt with by interested parties.”

Related: Dubai VARA grants ‘initial approval’ to crypto firm WadzPay

The new Security Law would be based on the United Nations Commission on International Trade Law secured transactions model, with adaptations. Those laws are in their consultation period through Nov. 5.

This comes on the heels of the Abu Dhabi Global Market’s passage of Distributed Ledger Technology (DLT) Foundations Regulations, which took effect on Nov. 1.

In Dubai proper, the Dubai Virtual Asset Regulatory Authority was established in March 2022 and given authority over all the emirate and its free trade zones except the DIFC. A virtual assets law was instituted in the emirate at the same time.

Magazine: Crypto City: Guide to Dubai

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