Crypto news: Ripple and Toncoin receive the green light in the Dubai International Financial Centre free trade zone.
These new tokens join BTC, ETH and LTC, expanding the usage options for more than 4,000 companies in the zone, which are also considering new legal initiatives. See below for all the details.
Summary
News: crypto assets Ripple and Toncoin position themselves in Dubai International Financial Centre
As anticipated, according to the latest crypto news the Dubai Financial Services Authority (DFSA) officially recognized two new tokens on November 2, placing Ripple (XRP) and Toncoin (TON) on the list of accepted tokens.Â
These join Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) as recognized cryptocurrencies in the Dubai International Financial Centre (DIFC).
This new status will allow financial institutions in the DIFC to transact with these digital tokens. The area includes more than 4,000 companies, including the MENA office opened by Ripple in the DIFC in 2020.
Ripple said about 20% of its customers are located in that region, underscoring its appreciation for the DFSA’s incentive toward the adoption and use of digital assets such as XRP to consolidate Dubai as a leading financial center to attract foreign investment and promote economic growth.
DFSA exclusively regulates DIFC and implemented cryptocurrency regulations in 2021, then updated in November 2022.
New regulations in Dubai: legislative updates for the virtual assets sector
Recently, the DIFC also submitted a proposed digital assets law and planned to revise the 2005 Security Law along with financial regulations.
Specifically, the new law aims to define the legal aspects of digital assets, their control, transfer and management among stakeholders.
Hence, the legislative landscape is evolving with the introduction of laws inspired by the United Nations Commission on International Trade Law’s secure transactions, which is currently under consultation until 5 November.
In parallel, the Abu Dhabi Global Market approved regulations on distributed ledger technology (DLT), which became operational on 1 November.
Not only that, in Dubai, the Dubai Virtual Asset Regulatory Authority was established in March 2022, with jurisdiction over the entire emirate and its free trade zones, with the exception of the DIFC.
Concurrently, legislation on virtual assets within the emirate was introduced.
Backpack exchange: the new crypto trading hub in Dubai, security and innovation
Backpack, a renowned figure in blockchain-based financial services, recently made official the launch of its new crypto exchange service, the Backpack Exchange.
The innovative platform recently received authorization as a virtual asset service provider (VASP) from the Dubai Virtual Asset Regulatory Authority (VARA), marking a key milestone in the company’s expansion into the digital asset market.
The main objective of Backpack Exchange is to ensure a secure and user-friendly trading environment, targeting both retail and institutional investors.
In addition, the service plans to introduce cutting-edge features such as staking, loans, and margin trading in order to meet the diverse needs of users.
VARA’s approval of the VASP license underscores Backpack’s commitment to regulatory compliance and security.
Indeed, VARA is known for its strict regulatory framework, ensuring that licensed entities meet high standards of transparency, consumer protection, and anti-money laundering (AML) practices.
Backpack’s successful achievement of this license demonstrates the company’s commitment to operating within the legal and regulatory limits set by the authorities.
Backpack’s entry into the crypto exchange market promises to bring increased competition and innovation.
The company’s established reputation in blockchain-based financial services, along with its focus on regulatory compliance, positions it as a reliable and trustworthy player in the digital asset space.
In addition, the launch of the Backpack Exchange is considered a significant advance for the cryptocurrency ecosystem in Dubai.
The city has proactively positioned itself as a center for innovation in blockchain and digital resources. Backpack’s approval of the VASP license is in line with Dubai’s vision of becoming a leading global center for fintech and digital assets.
