Ripple Partners with UAE Following Binance’s Recent Investment

Ripple has established a partnership in the UAE, gaining approval for crypto payments in Dubai after Binance’s own deal. Approximately 20% of Ripple’s clients are in the Middle East. Ripple’s CEO emphasizes the UAE’s potential for the crypto industry. The company is also dealing with SEC legal issues amid a changing regulatory environment.

Ripple has made a significant expansion in the Persian Gulf by forming a partnership with the United Arab Emirates, following a similar deal by Binance. The company, known for its XRP token and cross-border payment solutions, has announced that it has garnered regulatory approval to offer crypto payment services in Dubai’s International Financial Centre. Notably, approximately 20% of Ripple’s clientele is situated within the Middle East.

The UAE has emerged as a pivotal hub for cryptocurrency, largely due to its special economic zone, the Dubai International Financial Centre (DIFC). This zone offers advantageous conditions such as relaxed regulations and no corporate, personal, or capital gains taxes, appealing to entrepreneurial ventures. Ripple’s CEO, Brad Garlinghouse, affirmed that the UAE is ideally positioned to support the burgeoning cryptocurrency industry.

On the same day Ripple made its announcement, Binance, the globe’s largest crypto exchange, disclosed its acquisition of a substantial $2 billion investment from MGX, an AI investment firm associated with the UAE government. It is reported that Binance’s largest shareholder, Changpeng Zhao, resides in the UAE’s capital, Abu Dhabi, symbolizing the close ties between the exchange and the region.

However, Ripple has faced significant legal challenges in the past, including charges from the Securities and Exchange Commission (SEC) alleging noncompliance with U.S. securities laws. Recently, some of these actions against Ripple have been dismissed as the Trump administration relaxes its stance on the digital asset sector, although one case remains active. Despite XRP’s strong performance following Trump’s election in November, where its value surged by over six times, the overall crypto market, including XRP, has seen declines amidst economic tensions.

In summary, Ripple’s recent partnership with the UAE highlights the region’s growing significance in the global cryptocurrency landscape. This move, following Binance’s investment in the same market, positions both companies to capitalize on the favorable regulatory environment. Additionally, Ripple continues to navigate legal challenges in the United States while adapting to the evolving financial ecosystem.

Original Source: www.dlnews.com