Ripple enters UK market after SEC victory
Ripple is applying for a crypto license in the UK following its partial victory against the US Securities and Exchange Commission (SEC).
Sendi Young, the managing director for the UK & Europe at Ripple, confirmed that the company has recently applied for crypto asset firm registration with the UK’s Financial Conduct Authority (FCA). Additionally, Ripple has also sought a payment institution license in Ireland.
The move comes after a favorable ruling in the legal battle with the SEC in the United States, which provides clarity on the status of XRP. The District Court for the Southern District of New York judged that selling XRP on exchanges does not qualify as an investment contract.
However, the court also determined that XRP can be considered a security when sold to institutional investors, meeting the conditions set by the Howey Test.
Ripple sees this court decision as a victory and a positive development for its growth in the US market. With its legal position clarified, the company is now looking to expand its operations in the UK and Ireland by seeking the necessary regulatory licenses for conducting crypto-related activities.
Ripple CEO Brad revealed last year that the US-based company filed with the Central Bank of Ireland, the country’s financial services regulator, for a licence to serve as a Virtual Asset Service Provider.
Ripple General Counsel Stuart Alderoty said that Ripple has two employees on the ground in Ireland. It is seeking a license from the Irish central bank so that it can “passport” its services throughout the European Union.
Setting up in Ireland will also provide access to the country’s finance and technology talent pools for Ripple, though the country is not as lax as some other territories in Europe, such as Gibraltar or Malta.
Elsewhere, Ripple made a strategic move to expand its global presence by acquiring a stake in the European cryptocurrency exchange Bitstamp.
Although Ripple has not officially disclosed details about the transaction, the information surfaced through Galaxy Digital’s most recent quarterly report. Specifically, the company advised crypto hedge fund Pantera Capital on the sale of Bitstamp shares to Ripple during the first quarter of this year. This confirmation was reiterated by Galaxy Digital’s CIO, Christopher Ferraro, during a conference call with shareholders earlier in May.
Bitstamp has won regulatory approval from the Financial Conduct Authority (FCA) in June, allowing the exchange to continue serving UK-based customers. With this registration, Bitstamp now holds a total of 52 global licenses.
