Ripple has set up a regional office at the Dubai International Financial Center (DIFC), according to an announcement made on November 7th .
The blockchain-based payment company is said to have chosen the location for its „innovative regulations“. The DIFC website states that the Special Economic Zone serves more than 2,500 companies from the Middle East, Africa and South Asia as an „independent regulator“ with a „proven legal system“.
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Navin Gupta, a managing director at Ripple explained the move as follows:
Ripple already has a significant customer base in the MENA [Middle East and North Africa] region and the ability to co-locate with our customers made the DIFC a natural choice. Our regional office will serve as a stepping stone to introduce our blockchain-based solutions and deepen our relationships with even more financial institutions in the region.
CEO Brad Garlinghouse and co-founder Chris Larsen talked about moving the company’s headquarters in San Francisco to a country with greater regulatory clarity than the United States.
The United Arab Emirates-based DIFC allegedly won’t offer blockchain firms like Ripple any taxes on corporate income and profits for at least 50 years. In addition to the financial center, Dubai Multi Commodities Center (the largest free trade zone in the UAE) announced in January that it was planning to launch a new type of Crypto Valley.
Ripple’s XRP suffers from increased volatility
Ripple’s move comes amid increased volatility in the XRP token compared to Bitcoin (BTC) and Ether (ETH) in 2020.
According to the XRP market report for the third quarter of 2020 published on November 5, the volatility of XRP was higher than that of BTC and ETH in the third quarter, representing an increase in volatility over the second and first quarters.