Ripple has submitted an application to be registered as a crypto asset firm with the Financial Conduct Authority (FCA) of the United Kingdom.
The crypto company seems to be capitalizing on its momentum, as it partially won a lawsuit against the United States Securities and Exchange Commission (SEC) last week.
The decision, seen as a victory by Ripple and the broader crypto community, considered the XRP token as a security when sold to institutional investors, but not to private investors. Ripple and regulation
Ripple’s application for a crypto license in the United Kingdom is one of the many steps the company is taking to comply with regulations. In 2020, Ripple reached a settlement with the Commodity Futures Trading Commission (CFTC) for not registering securities. The company has also taken several measures to improve its transparency, including releasing its code and establishing a fund to finance research on crypto assets.
Ripple’s efforts to comply with regulations come at a time when the crypto industry is facing increasing regulatory pressure. In the United States, the SEC has filed several lawsuits against crypto companies. The SEC has also issued several policy letters defining the regulation of crypto assets.
Heading towards the United Kingdom and Ireland
The increasing regulatory pressure has led several crypto companies to establish themselves in the United Kingdom. The UK has a more lenient regulatory climate for crypto assets than the United States. In 2019, the FCA registered several crypto companies as financial service providers.
Ripple’s application for a crypto license in the United Kingdom is a significant step for the company. It indicates that Ripple is serious about complying with regulations and building a long-term presence in the crypto industry.
Sendi Young, Ripple’s European General Manager, told DL News that the company had recently applied for registration of crypto asset firms with the British FCA, along with a license for a payment institution in Ireland.