Ripple, a payment protocol most famous for its native token XRP, recently applied in the U.K. to register as a crypto asset firm with the Financial Conduct Authority, the country's financial market regulator. The move came nearly one year after Ripple announced its plans to expand further in Europe, especially to the U.K. and Ireland. Ripple's managing director of Europe, Sendi Young, defined the application as a huge win and a positive move for the firm's overall growth and success. - The firm also simultaneously applied for a payment institution license in Ireland.
- The applications followed Ripple's partial win in court against the U.S. Securities and Exchange Commission (SEC), which classified XRP as a security in a lawsuit filed in December 2020.
- U.S. Judge Analisa Torres recently ruled that XRP is not a security when sold to the general public.
- On the other hand, earlier this year, Ripple CEO Brad Garlinghouse said the firm would remain committed to the U.S. as a hub for its global operations.
Over the last several months, the U.K. has increasingly become an attraction point for crypto companies due to its regulatory clarity and supportive business environment as U.S. regulators increased their crackdown on the industry. - Most recently, the country officially passed the Financial Services and Markets Bill (FSMB) that recognizes crypto as a regulated activity and brings cryptocurrencies and stablecoins under the same rules applied to traditional financial assets.
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