Ripple is seeking a UK crypto asset firm license, prompted by clear UK regulations and its partial SEC victory.
Ripple, a frontrunner in digital payment solutions, has set its sights on expanding its global footprint. The company is seeking to secure a crypto asset firm license with the Financial Conduct Authority (FCA) in the United Kingdom. Furthermore, this new venture follows Ripple’s half-victory against the U.S. Securities and Exchange Commission (SEC), which stirred a buzz in the crypto community.
Ripple’s battle with the SEC saw the company gaining partial favor, with XRP, Ripple’s native token, categorized as a security for institutional investors. However, for regular, everyday investors, XRP remained a non-security. Although the SEC still has the opportunity to challenge this outcome, Ripple seized this momentum, pursuing opportunities in the UK, known for its transparent regulations and supportive business setting.
UK Becoming a Crypto Haven
With stringent enforcement actions by the SEC becoming a norm in the U.S., many crypto businesses are flocking to the UK. The country is fast emerging as a preferred destination due to its clear regulatory norms. A case in point is venture capital giant Andreessen Horowitz (A16z), which recently opened its first non-U.S. branch in London after several productive discussions with the FCA and other policymakers.
The UK’s progressive steps in creating a controlled environment for cryptocurrencies have drawn global attention. A landmark law, recently assented to by the royal court, places cryptocurrencies under the same regulatory framework as traditional assets. Moreover, this empowers entities like the FCA, the UK Treasury, the Bank of England, and the Payments Systems Regulator to supervise and enforce regulations on crypto businesses.
As cryptocurrencies continue to gain prominence, UK lawmakers are planning ahead to prevent illegal activities associated with them. Moreover, legislative drafts are being reviewed that will strengthen authorities’ capability to act against cryptocurrencies used for unlawful purposes. This includes making it easier to confiscate and recover crypto assets.