Dubai DFSA recognizes XRP and Toncoin

On November 2, the Dubai Financial Services Authority (Dubai Financial Services Authority)DFSA) has made significant progress in the digital asset space by officially recognizing two other tokens, XRP and Toncoin.

These coins have now joined the ranks Bitcoinether and Litecoin As an officially recognized digital currency within the Dubai International Financial Center (DIFC).

This recognition means that financial institutions operating within the DIFC will be allowed to conduct transactions involving these newly recognized tokens.

DIFC is a vibrant special economic zone currently home to more than 4,000 companies, making it an important hub for financial activity in the region.

In 2020, Ripple, the company behind XRP, opened its MENA regional headquarters within the DIFC, underscoring the strategic importance of the location.

About 20% of Ripple’s customer base is located in the Middle East and North Africa region, and the company has expressed enthusiasm for the development.

Ripple CEO Brad Garlinghouse emphasized the importance of the DFSA’s decision in enhancing Dubai’s position as a global financial services center, promoting foreign investment and driving economic growth.

The DFSA, which is specifically responsible for supervising the DIFC, launched cryptocurrency supervision in October 2021 and further strengthened supervision in November 2022.

At the end of September, the DIFC launched its proposed Digital Assets Law, which also includes plans to repeal the existing Securities Act 2005 and the Financial Collateral Regulations.

Instead, the DIFC intends to introduce an updated Security Law that includes more comprehensive collateral regulations.

The proposed Digital Assets Law outlines the legal attributes of digital assets, their proprietary nature, and the protocols for stakeholders to control, transfer and dispose of them.

These legal developments are currently subject to a consultation period, which is expected to end on 5 November.

These advancements in digital asset regulation come after Abu Dhabi Global Market released regulations for its platform technology Distributed ledger (DLT), effective November 1st.

At the same time, the main DubaiThe Dubai Virtual Asset Authority was established in March 2022 and governs the entire emirate and its free trade zones, excluding DIFC.

The move, which comes alongside the introduction of the Virtual Assets Law, signals Dubai’s commitment to staying at the forefront of the evolving digital asset space.

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