After the important victory at home, Ripple is pushing ahead with its own expansion efforts in Europe.
Crypto payments service provider Ripple has applied for registration as a crypto asset service provider with the UK’s Financial Conduct Authority (FCA). The company is simultaneously seeking a payment license in Ireland as part of its expansion efforts into the region.
The application was filed after Ripple scored a major point victory against the U.S. Securities and Exchange Commission (SEC) regarding the classification of the company’s cryptocurrency XRP by failing to classify it as a security by the relevant court. The ruling, which is seen as a landmark victory by Ripple and the broader crypto community, classifies the XRP token as a security only when it is sold to institutional investors, but not when it is sold to retail investors. However, the SEC can still appeal the ruling.
In the face of a wave of SEC prosecutions against the U.S. crypto industry, more and more crypto companies are looking to the U.K. for regulatory clarity and an enabling environment.
Recently, even influential venture capital firm Andreessen Horowitz (A16z) announced its first new office outside the U.S. in London after “months of constructive discussions” with policymakers and the FCA, citing a “predictable business framework” as the main reason for expanding abroad.
The UK Parliament, meanwhile, has introduced several bills aimed at creating a clear legal framework for crypto. Accordingly, in June, a bill was passed that would subject cryptocurrencies to the same rules that apply to traditional assets. The new law empowers the Treasury, the Financial Conduct Authority (FCA), the Bank of England and the Payment Systems Regulator to introduce and enforce regulations for crypto companies.
Furthermore, the U.K. Parliament most recently negotiated a new bill that would expand authorities’ powers to prosecute crypto assets used for illicit purposes. Among other things, the bill would give authorities more flexibility to seize and confiscate cryptocurrencies.
Image by Miloslav Hamřík from Pixabay
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