{"id":39372,"date":"2023-07-23T07:06:10","date_gmt":"2023-07-23T11:06:10","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/ripple-requests-crypto-license-in-uk-after-sec-partial-win\/"},"modified":"2023-07-23T07:06:12","modified_gmt":"2023-07-23T11:06:12","slug":"ripple-requests-crypto-license-in-uk-after-sec-partial-win","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=39372","title":{"rendered":"Ripple Requests Crypto License in UK After SEC Partial Win"},"content":{"rendered":"
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Blockchain-based digital payment network\u00a0Ripple<\/strong>\u00a0has applied for a crypto license in the\u00a0UK<\/strong>\u00a0and\u00a0Ireland\u00a0<\/strong>after its partial win against the US\u00a0Securities and Exchange Commission<\/strong>.<\/p>\n

Sendi Young<\/strong>, Ripple’s managing director for the UK & Europe,\u00a0has revealed\u00a0that the company \u201cvery recently\u201d applied for crypto asset firm registration with the UK’s FCA, along with a payment institution license in Ireland.<\/p>\n

The move came after a\u00a0US court ruled in favor of Ripple\u00a0in the ongoing lawsuit brought by the SEC, claiming that selling XRP on exchanges in itself does not constitute an investment contract.\u00a0<\/p>\n

The ruling, issued by the\u00a0District Court for the Southern District of New York<\/strong>, stated that the \u201coffer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts.\u201d<\/p>\n

However, the federal judge also ruled that\u00a0XRP<\/strong>\u00a0is a security when sold to institutional investors, as it met the conditions set in the Howey Test.<\/p>\n

Young claimed the decision was a \u201chuge win\u201d and \u201cpositive for [the company\u2019s] growth in the US.\u201d<\/p>\n

\u201cWe haven\u2019t turned around and said, \u2018Let\u2019s stop hiring in the UK.\u2019 Our strategy and growth plans are intact and in place,” she said, adding:<\/p>\n

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\u201cWe are in the process of applying for our crypto asset registration in the UK and our payments licence in Ireland. These are all massive investments with a view that we are going to continue growing exponentially in this region.\u201d<\/p>\n<\/blockquote>\n

It is worth noting that Ripple has already significantly boosted its presence in the UK and Europe.\u00a0<\/p>\n

Over the last 18 months, the company has increased its UK and European employees by about 75% and now has more than 100 of about 900 global employees based in its offices in London, Dublin, and Reykjavik, Iceland.<\/p>\n

Did Ripple Really Won Against SEC?<\/h2>\n

While many crypto pundits have rejoiced about Ripple\u2019s recent partial win, others noted that the industry\u2019s fight for regulatory clarity is likely far from over.<\/p>\n

Preston Byrne, partner at Brown Rudnick and a crypto entrepreneur, said the SEC is currently reviewing the decision, claiming that the agency might challenge the ruling.\u00a0<\/p>\n

\u201cThe Ripple summary judgment is obviously not the last word on the issue,\u201d Byrne said in a recent tweet, noting that even if Ripple accepts the win, the firm still \u201cgot multi-billions of dollars in institutional sales that they\u2019re on the hook for.\u201d<\/p>\n

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Others also claimed that the summary judgment may not have a strong foundation and may not result in the desired change in the way the crypto industry is treated by the SEC.\u00a0<\/p>\n

Joe Castelluccio, leader of law firm Mayer Brown\u2019s Fintech group, said that the SEC will likely highlight the parts of the court decision that support their views on coins and tokens as securities.\u00a0<\/p>\n<\/p><\/div>\n