The United Arab Emirates (UAE) is becoming a haven for digital asset services providers as Ripple’s remittance service launches in the Gulf region.
Dubai Regulator Approves an International Payment Platform
As per the press release, the Dubai Financial Services Authority (DFSA) has granted a 3S Money operating license. 3S Money is an international payment platform providing money services to clients.
With the new approval, 3S Money will be providing money services from the Dubai International Financial Center (DFIC). For context, the FDIC is a financial ecosystem for the Middle East, Africa, and South Asia.
For its part, Dubai serves as the commercial nerve of the Middle East. It is also the most populous city among the Gulf Nations.
3S Money aims to use the license to expand its cross-border payment business.
The money service provider will offer Dubai companies access to over 190 countries using a single global business account. Thus, this will enhance faster payments involving more than 40 currencies.
Ripple’s Middle East Presence
The American crypto fund manager, Ripple, already has a presence in the UAE. The Middle East and North Africa (MENA) are housed in the DFIC environment. However, Ripple wants a regional base to have the opportunity to cohabit with its customers in their exact location.
3S Money became RippleNet’s partner in 2019. The collaboration will allow it quickly settle payments globally using local partners. This eliminates the need to use expensive international payment platforms.
On a broader scale, the Persian Gulf is an attractive prospect for the cross-border payment sector. As a result, the significance of the latest move is a win for all parties involved.
The Gulf region, especially Dubai, is one of the leading senders and recipients of remittances worldwide. The high concentration of expatriates in the UAE makes it a booming market for money service providers. Meanwhile, the UAE is also the second-largest economy in the Middle East.
Dubai Doubles Down on Investor Protection
Following Dubai’s issuance of a license to crypto exchanges, the regulatory body has prioritized user protection.
In August, the Virtual Assets Regulatory Authority (VARA) announced new guidelines for the crypto industry.
According to VARA, the regulations cover marketing, advertising, and promoting crypto assets. The regulator refers to any form of outreach, communication, and customer engagement that must contain factual information.
Accordingly, all virtual asset providers must adhere to the guidelines to avoid dishing out misleading information to potential consumers.
The new law aims to protect unsuspecting customers and sanitize the crypto market.
Dubai has been one of the leading crypto hubs in the world, as the city experienced a surge in the adoption of digital assets. The authorities continue positioning the UAE as a crypto hub by implementing investor-friendly regulations.
In addition, it has put infrastructure in place to attract offshore crypto firms and blockchain experts.
With VARA, the UAE is on its way to becoming an investor’s choice destination for crypto investment.
