Ripple’s relationship with global regulators in stark contrast with US SEC

Rick Steves

“I would like to say we are friends. Here [in the UK], and many places around the world, we are working very, very closely with central banks and government regulators.”

Ripple remains one of the leading figures in the world of digital assets. While the firm continues to pursue its mission of disrupting cross-border settlement by using its blockchain technology and network, it has to deal with the many regulators across the globe.

The company is happy to say it has cozied up with most, but unfortunately not with the US Securities and Exchange Commission, with whom it has been fighting in the New York federal court that may well define the future of the digital asset industry.

“I would like to say we are friends”

As part of its good relationship with the Bank of England, Ripple was able to partner with UK payments platform Modulr to enable seamless payments into the United Kingdom and Europe.

This will allow businesses to run real-time payments internationally powered by Ripple’s financial technology, RippleNet. Modulr offers a Payments-as-a-Service solution into the European and UK payment rails, with access to critical payment infrastructure in the UK including Faster Payments and Bacs CHAPS, SWIFT, and SEPA in Europe.

Modulr is one of few non-banks to be directly connected to the Bank of England, allowing the payments platform to settle funds at the Central Bank.

It is by establishing and nurturing a daily relationship with agencies and central banks that Ripple is able to build a successful enterprise in such a regulated industry.

“We are looking to solve a very specific problem in the market. In our approach we want to work with the system including ecosystem partners, governments, and regulators”, Sendi Young, the managing director for RippleNet Europe told City A.M. “I would like to say we are friends. Here [in the UK], and many places around the world, we are working very, very closely with central banks and government regulators.”

“We have regular meetings around a variety of topics”, she continued, insisting that Ripple is in a “very good position” with regulators worldwide.

The US Securities and Exchange Commission, on the other hand, has decided to move forward with a complaint against Ripple in December 2020 for an unregistered securities offering for the sale of XRP since 2013.

Although the SEC had successfully won or settled in “similar” litigations such as Telegram and EOS, this time the crypto ecosystem is uniting against the agency as the regulation-by-enforcement practice has failed to provide proper notice of the rules to operate in the United States.

Read this next

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

Institutional FX

Eurex reports mixed volumes for November 2022

Deutsche Börse’s derivatives-focused exchange, Eurex today said its total traded derivatives contracts grew by 10 percent in November, from 68.6 million to 75.3 million compared to the same month last year.

<