Victor Ugochukwu · Dec 14, 2020 . 5min read
Ripple plans to shift to UK from USA owing to regulatory concerns
Ripple considers shifting its headquarters to U.K as it provides clear taxonomy over the lack of clear regulations in USA.
By Komal Joshi · Oct 27, 2020 . 5min read
Crypto firm Ripple, famous for its XRP cryptocurrency, is preparing to shift its headquarters from the USA to the U.K. due to regulatory concerns. The Fin-tech company is most notable for its XRP digital currency. The firm’s CEO, Brad Garlinghouse, based in San Francisco, recently spoke about his visit to the U.K. He elucidates how the markets in the U.K. beneath the FCA (Financial Conduct Authority) do not think XRP to be just security, unlike the USA. He also says that the other regions around there are showing similar support.
Reasons behind Ripple’s geographical shift.
Brad Garlinghouse suggests that the U.K. has a clear taxonomy over things. The FCA plays a leadership role in striving to illustrate how the citizens and firms should think about their assets and their acceptance. This clear administration has carried out a single issue, which advocates that XRP is not a security. Moreover, it can be often employed as a kind of currency. In context to the point, it would be much more beneficial for the crypto firm to be operating in the U.K.
Apart from the UK, Ripple was also proposing other possible headquarters like Singapore, Switzerland, Japan, and the UAE. However, Garlinghouse thinks that the U.S. is not an option. The reason being the way G20 markets trade and how the majority of the nations think about their administration.
Moreover, Ripple has been a part of a legal battle that has included various cryptocurrency investors. They cite that the company is trading securities that are unregistered and compelling statements about XRP that are quite misleading. The company has dismissed all accusations and has started back on various proposals that address XRP as a security.
Contrarily, the SEC officials, have suggested that most cryptocurrencies such as Ethereum and Bitcoin are not securities that are to be regulated in the way that of bonds and stocks. This makes the complete status of XRP ceiled in question. Ripple declares itself to be fully autonomous of any cryptocurrency. However, they do hold approximately 55 billion of the total 100 billion XRP tokens that exist.
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