Ripple applied for a registration as a crypto asset firm with the United Kingdom’s Financial Conduct Authority (FCA).
In addition, the company is seeking a payments license in Ireland as part of its extensive investment plans in the region.
This comes after Ripple’s recent partial victory against the United States Securities and Exchange Commission (SEC) regarding the classification of its XRP token as a security.
The decision has been viewed as a win by Ripple and the broader crypto community, further fueling its expansion efforts.
As more crypto firms seek regulatory clarity and a supportive business environment, the United Kingdom’s market emerges as an attractive destination amidst increased enforcement actions by the SEC in the United States.
According to a spokesperson for Ripple, the company has applied for registration as a crypto asset firm with the UK’s Financial Conduct Authority.
This move is seen as a strategic step to solidify its presence in the UK’s regulatory landscape and expand its operations within the region.
In parallel, Ripple is also pursuing a payments license in Ireland as part of its significant investment commitment to the country.
The decision to register as a crypto asset firm comes after Ripple’s partial win in the legal battle against the SEC in the United States.
The ruling clarified the classification of Ripple’s XRP token, determining it to be a security when sold to institutional investors but not to retail investors.
While the case remains open to appeal by the SEC, the favorable outcome has provided Ripple with momentum to pursue its expansion plans in Europe.
Amidst the SEC’s heightened enforcement actions in the United States, more crypto firms are turning their attention to the United Kingdom for regulatory clarity and a business-friendly environment.
The UK market has been demonstrating increasing appeal to crypto companies seeking opportunities for growth and compliance with regulatory requirements.
The trend of crypto firms looking towards the UK is evident with venture capital firm Andreessen Horowitz’s recent announcement.
A16z has established its first office outside the US in London, citing “months of constructive conversations” with policymakers and the FCA. The predictable business environment in the UK has been a key factor in their decision to expand overseas.
The British parliament has taken significant steps towards setting up a crypto-regulated environment. In June, a bill that brought cryptocurrencies under the same rules applied to traditional assets was signed into law, receiving the royal assent of King Charles.
The Treasury, Financial Conduct Authority (FCA), Bank of England, and Payments Systems Regulator were granted the authority to introduce and enforce regulations for crypto businesses.
In another recent development, lawmakers in the upper house discussed drafts of a legislation that seeks to expand authorities’ ability to target cryptocurrencies used for illicit purposes.
The bill includes provisions that provide authorities with greater flexibility in confiscating and recovering crypto assets.