Ripple has taken a significant step by applying for registration as a crypto asset firm with the United Kingdom’s Financial Conduct Authority (FCA). This move comes in the wake of their partial victory against the U.S. SEC regarding the classification of their XRP token as a security. As Ripple expands its regional investments, it also seeks a payments license in Ireland.
Partial Win Against U.S. SEC Spurs UK Application
Following its partial win against the United States Securities and Exchange Commission (SEC) over the categorization of XRP, Ripple decided to seek registration as a crypto asset firm in the UK.
The victory was seen as a positive development. The XRP token is now being classified as a security only when sold to institutional investors but not retail investors. Nevertheless, the case remains open to potential appeal by the SEC.
UK’s Growing Appeal in the Crypto Industry
The UK has been increasingly attractive to crypto firms seeking regulatory clarity and a supportive business environment. This is especially amid the SEC’s intensified enforcement actions in the United States. This trend has been further reinforced by venture capital firm Andreessen Horowitz (A16z) opening its first non-U.S. office in London.
Ripple seeks crypto license and this decision was driven by the “predictable business environment” provided by the UK. This however, followed constructive discussions with policymakers and the FCA.
UK’s Proactive Crypto Regulation Framework
The UK government has taken proactive steps to establish a robust crypto-regulated environment in the country. In June, a bill was signed into law, bringing cryptocurrencies under the same regulatory framework as traditional assets.
This significant legislation grants the UK Treasury, the FCA, the Bank of England, and the Payments Systems Regulator the authority to introduce and enforce regulations for crypto businesses operating within the nation’s borders.
Furthermore, the UK government has been discussing drafts of legislation aimed at expanding authorities’ ability to combat the illicit use of cryptocurrencies. The proposed bill includes provisions that grant authorities greater flexibility in confiscating and recovering crypto assets involved in illicit activities.
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