Ripple, the payment protocol, has taken a significant step in its global expansion plans by applying for registration as a crypto asset firm with the United Kingdom’s Financial Conduct Authority (FCA).
Additionally, the company is seeking a payments license in Ireland, further solidifying its massive investment in the region.
This move comes on the heels of a recent partial win against the United States Securities and Exchange Commission (SEC) over the classification of its XRP token as a security.
As Ripple’s ambitions grow, more crypto firms are eyeing the United Kingdom for regulatory clarity and a supportive business environment, while the country is witnessing increased legislative efforts to establish a crypto-regulated environment.
According to a spokesperson for Ripple, the company has recently applied for registration as a crypto asset firm with the FCA in the United Kingdom.
Concurrently, the payment protocol is also seeking a payments license in Ireland, signaling its commitment to expanding its presence and services in the region.
Ripple’s registration submission comes in the wake of its partial win against the SEC in the ongoing case regarding the classification of its XRP token as a security.
The decision, seen as favorable by both Ripple and the broader crypto community, determined that the XRP token should be considered a security when sold to institutional investors but not to retail investors.
Although the case remains open to appeal by the SEC, Ripple’s victory has boosted its prospects and regulatory standing.
With a wave of enforcement actions by the SEC in the United States, more crypto firms are looking to the United Kingdom as a favorable destination for regulatory clarity and a supportive business environment.
Venture capital firm Andreessen Horowitz (A16z) recently announced its expansion into London, citing a “predictable business environment” as a key driver for setting up its first office outside the U.S.
The British parliament has taken significant steps towards establishing a crypto-regulated environment in the UK. In June, a bill was signed into law, bringing cryptocurrencies under the same rules applied to traditional assets.
This new legislation grants authorities, including the Treasury, FCA, Bank of England, and Payments Systems Regulator, the power to introduce and enforce regulations for crypto businesses, enhancing the regulatory framework in the country.
In response to emerging challenges, lawmakers in the upper house discussed drafts of legislation aimed at expanding authorities’ capabilities to target cryptocurrencies used for illicit purposes.
The proposed bill includes provisions for greater flexibility in confiscating and recovering crypto assets, reflecting the UK’s commitment to fostering a secure and transparent crypto ecosystem.
