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