- July 26, 2023
- Posted by: [email protected]
- Category:
Payment protocol Ripple has made a significant move by applying for registration as a crypto asset firm with the Financial Conduct Authority (FCA) in the United Kingdom. The company has also expressed its interest in obtaining a payments license in Ireland, indicating its substantial investment in the region.
This registration submission comes on the heels of Ripple’s partial victory against the United States Securities and Exchange Commission (SEC) concerning the classification of its XRP token. The recent decision deemed XRP a security when sold to institutional investors, but not to retail investors, marking it as a positive outcome for Ripple and the broader crypto community. However, the case remains open to appeal by the SEC.
As the SEC has undertaken a series of enforcement actions in the United States, more cryptocurrency firms are looking to the United Kingdom for regulatory clarity and a supportive business environment. The UK has been proactive in addressing crypto regulations, attracting companies seeking a stable and predictable operational framework.
In light of this trend, venture capital firm Andreessen Horowitz (A16z) has announced its expansion to London, establishing its first international office outside of the U.S. The decision followed constructive conversations with policymakers and the FCA, with a “predictable business environment” cited as a significant reason for the move.
The British parliament has been actively introducing legislation aimed at creating a regulated environment for cryptocurrencies in the UK. In June, a bill was signed into law, subjecting cryptocurrencies to the same regulations applied to traditional assets. This law empowers authorities such as the Treasury, FCA, Bank of England, and Payments Systems Regulator to develop and enforce regulations for crypto businesses.
Additionally, the UK’s upper house has recently discussed drafts of legislation seeking to strengthen authorities’ ability to address cryptocurrencies used for illicit purposes. The proposed bill includes provisions granting authorities greater flexibility in confiscating and recovering crypto assets involved in illegal activities.
As Ripple’s registration and licensing process unfolds, it reflects a broader trend of crypto firms seeking more favorable regulatory environments to foster growth and innovation. The outcome of these developments will not only shape Ripple’s future in the UK but also impact the overall crypto landscape within the region and beyond.
