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In the letter
- Ripple is considering moving to London, in the midst of uncertainty legislation in the United States.
- The status of its cryptocurrency is in question on its territory.
- The UK has offered to Ripple XRP the guarantee that it would not be considered a title.
In a file interview with CNBC today, CEO Brad Garlinghouse said the UK regulator, the Financial Conduct Authority, has assured Ripple that it does not consider XRP a security, a key source of contention in its internal market. Instead, the FCA believes that XRP is a currency, he said, and “with that clarity, it would be beneficial for Ripple to operate in the UK.”
The $ 10 billion fintech firm considered several potential new jurisdictions, and Garlinghouse revealed that the legal status of the XRP cryptocurrency is central to any decision. Japan, Singapore and Switzerland are also being studied.
Looking for a clear taxonomy
Ripple has long been angered by the US Securities and Exchange Commission’s stance on cryptocurrencies. The SEC indicated that Bitcoin and Ethereum are not stocks, while the status of XRP remains less clear.
The company is fight a legal battle with investors claiming that XRP is an unregistered and illegally released stock and that Ripple is making misleading claims, allegations Ripple denies.
Being tagged as a title would also put XRP under strict rules, with big repercussions for Ripple. While claiming to be independent of cryptocurrency, Ripple owns more than half of the existing XRP tokens.
Ripple claims to hold the majority of these funds on escrow and mainly uses the digital asset for its financial services clients to transfer funds quickly and cheaply, but regularly sells holdings.
“Regulation shouldn’t be a guessing game,” Garlinghouse said in a separate interview with Bloomberg on Wednesday. In the United States, he explained, the regulatory environment meant cryptocurrencies could be classified as currencies, commodities, properties, or stocks. “You have several pockets of regulation from different parts of the government.”
But he stressed that the company would prefer to stay in the United States.
He praised Japan for regulations that were “at odds” with the situation in the United States and pointed out that Japan is one of Ripple’s fastest growing markets, thanks to links with the Japanese SBI Holdings.
Part of the SBI group, the financial conglomerate manages dozens of companies involved in financial services, wealth management and biotechnology, as well as SBI Ripple Asia.
When asked if Ripple was disappointed that XRP was not selected by PayPal, which recently announced it would offer support for four cryptocurrencies, Garlinghouse again blamed the regulatory uncertainty.
He made his final remarks, two weeks after Ripple’s executive chairman Chris Larsen first suggested that the company could do so. leave the United States.
Source: Cryptonewsz
