Robert Steinadler, 4 months ago
Ripple had a tough time over the last two years. In December 2020, the Securities and Exchange Commission started its crusade against the company claiming that XRP is a security and that Ripple failed to register its past XRP sales properly.
Why is Ripple keeping an eye on Europe and what kind of advantage would the company gain when applying for a license in Ireland?
It was Ripples legal counsel Stuart Alderoty who admitted in an interview with CNBC last week, that the company was not active in the US market any longer. This is a polite way of saying that Ripple lost the US market due to the lawsuit that was in pursuit by the SEC.
The fact that XRP got delisted from most US exchanges and is not offered to US customers whatsoever basically meant that the company had to offshore its business.
Ripple doesn’t necessarily need XRP as a cryptocurrency. Its technology is built on the XRP Ledger and can be used for several business cases like remittance and most of its partners are banks or payment providers. XRP, on the other hand, can be used as bridge currency to transfer money in a fast, secure and reliable way. Therefore, it is not only about XRP being a security but also a business model that Ripple couldn’t continue in the US.
According to Alderoty, Ripple is interested in applying for a license as a virtual asset service provider as well as an electronic money license. Both would allow Ripple to start operating in Europe since these licenses can be used for passporting within the EU.
The recent MiCA regulation also plays a part in Ripples plans to set foot on the continent. It is not clear whether the company will win the case against the SEC or not.
With Ripple actively searching for other places than the US, it becomes clear that the outcome to the case might not be as important to the company. Keeping its business operating under a clear regulatory framework may be the most critical factor and MiCA is almost finalized. The lawsuit against the SEC will most likely be settled within the first half of 2023. It remains to be seen if Ripple choses to leave US even when the company can settle score with the SEC and win the case.
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