Payments protocol Ripple recently filed for registration as a crypto asset company with the UK’s Financial Conduct Authority (FCA), a spokesperson for the company told Cointelegraph. The company is also seeking a payments license in Ireland as part of its massive investment in the region.
The registration was submitted following Ripple’s partial victory against the United States Securities and Exchange Commission over its classification of XRP token (XRP) as a security. The decision, seen as a victory by Ripple and the wider crypto community, considers the XRP token a security when sold to institutional investors, but not to retail investors. The case is still open for appeal by the SEC.
XRP is not security.
This win is for @Ripple was a win for the entire industry and a step towards regulatory clarity in the US
— Riak (@Riak) July 13, 2023
More crypto companies are looking to the UK for regulatory clarity and a supportive business environment amid a wave of enforcement action by the SEC in the United States.
Recently, venture capital firm Andreessen Horowitz (A16z) announced its first new office outside the US in London, after “many months of constructive conversations” with policymakers and the FCA, and cited the “predictability of the business environment” as the main reason for expanding overseas.
Several pieces of legislation have been introduced in the UK parliament aimed at setting up a crypto-regulated environment in the UK. In June, a law bringing cryptocurrencies under the same rules that apply to traditional assets was signed into law after receiving royal approval from King Charles. The new law gives the Treasury, the Financial Conduct Authority (FCA), the Bank of England and the Payment Systems Regulator the power to introduce and enforce regulations for crypto businesses.
In a recent development, lawmakers in the upper house discussed a draft law that seeks to expand authorities’ ability to target cryptocurrencies used for illicit purposes. The bill includes provisions for authorities to have greater flexibility in seizing and recovering crypto assets.
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