Payments network and technology company Ripple has recently applied for registration as a crypto asset firm with the United Kingdom’s Financial Conduct Authority (FCA), a spokesperson for the firm told Cointelegraph. The company also seeks a payments license in Ireland as part of its massive regional investment.
The registration was submitted after Ripple’s partial win against the United States Securities and Exchange Commission (SEC) over the classification of its XRP (XRP) token as a security. The decision, viewed as a win by Ripple and the broader crypto community, considered the XRP token a security when sold to institutional investors but not retail investors. The case is still open to appeal by the SEC.
XRP is not a security.— Ripple (@Ripple) July 13, 2023
This victory for @Ripple is a win for the entire industry and a step toward regulatory clarity in the U.S.
A huge thank you to @bgarlinghouse, @chrislarsensf, and @s_alderoty for their leadership and the #XRPCommunity for their continued support.
More crypto firms are looking to the U.K. for regulatory clarity and a supportive business environment amid a wave of enforcement actions by the SEC in the United States.
Recently, venture capital firm Andreessen Horowitz (A16z) announced its first new office outside the U.S. in London, following “months of constructive conversations” with policymakers and the FCA, citing a “predictable business environment” as a key reason for expanding overseas.
Several laws have been introduced in the U.K. parliament aimed at setting up a crypto-regulated environment in the country. In June, a bill bringing cryptocurrencies under the same rules applied to traditional assets was signed into law after receiving royal assent. The new law gives the U.K. Treasury, the FCA, the Bank of England and the Payments Systems Regulator the authority to introduce and enforce regulations for crypto businesses.
In another recent development, lawmakers discussed drafts of legislation seeking to expand authorities’ ability to target cryptocurrencies used for illicit purposes. The bill includes provisions for authorities to have greater flexibility in confiscating and recovering crypto assets.