Ripple, a popular blockchain-based payment firm, is now registered with the UK Financial Conduct Authority (FCA) through its subsidiary in the country. This registration allows Ripple to provide some crypto services in the United Kingdom.
Why Ripple’s UK Registration Matters
Ripple UK Ltd, the subsidiary of the company in the country, was registered under the money-laundering regulations of the United Kingdom, as presented in a revised register of the FCA. The registration is a confirmation that the company has met the compliance standards of the country when it comes to crypto-related activities.
This license is a big regulatory milestone for Ripple in Europe. The accomplishment happens after the company disclosed its choice to stay private. Ripple ruled out IPO plans amid ongoing regulatory expansion.
It also cemented the position of Ripple in an industry that demands clear regulatory structure for crypto. Financial Conduct Authority regulates cryptocurrency companies through various rules such as anti-money-laundering policies.
Meanwhile, this UK registration does not permit Ripple to run any kind of financial services within the country. Rather, it only allows limited crypto operations and they are to be supervised. These operations involve exchange-related and payment-related services that are approved by the regulator.
Does UK Approval Boost the Growth of Ripple?
The FCA registration is also a significant move for Ripple as it seeks to gain access to regulated markets across the globe. The company is still in pursuit of other licenses and registrations in other regions other than the United States.
The license will further boost the utility of XRP. Ripple makes use of XRP to enable cross border payments. The infrastructure developments that have taken place recently substantiate this role. Ripple-backed Evernorth wants to increase XRPL liquidity with the help of a new collaboration.
The UK has been keen in digitizing its current financial system. The government is seeking to make Britain a haven of compliant cryptocurrency operations.
Hence, the FCA approval for Ripple can be considered a part of this wider objective. It demonstrates that the UK regulator are receptive to allow crypto companies run their businesses in the country provided they match the necessary standards.
Can UK Registration Boost Ripple Partnerships?
In addition, Ripple’s registration in the UK can enable it increase its number of partners among banks and payment partners. Regulatory transparency usually strengthens confidence of institutions.
Such trust was translated into capital inflows recently. Ripple attracted $300 million in institutional bet after a partnership between Korean asset manager, Lean Ventures and VivoPower to launch an investment vehicle.
The approval also brings out regional differences in regulations. The firm already has operational licenses in other countries such as Singapore. These achievements facilitate the marketing of its global payment strategy.
Source: https://coingape.com/xrp-gains-regulatory-foothold-as-ripple-secures-uk-fca-approval/
