The importance of regulations for the development of the crypto world is impossible to overstate. And, if there are no clear rules of the game, no business, including cryptocurrencies, can develop properly. Something that has become very clear after the latest statements by Ripple CEO Brad Garlinghouse, who has commented that Ripple could move to London due to the UK regulations.
Regulations for the crypto world
One of the biggest claims of the crypto community in recent years is the need for adequate regulations for the development of the crypto world. Well, until now, businesses related to Blockchain technology have operated in a regulatory vacuum. Operating with outdated and inadequate laws for this new industry, or no laws at all.
This of course generates a significant level of legal defenselessness for these companies. Which, in the face of any problem with users, criminals or other companies, do not have adequate state protection to guarantee their property and the operation of their business model.
For this reason, several countries have already begun to develop friendly legislation for crypto companies such as Ripple. With the aim of attracting as many of them as possible to settle in its territory. Which in the end will translate into a greater number of jobs for citizens of the country, a higher tax collection, and an important advance in the technological expertise of the population.
And one of the countries that has made the most effort in this regard is the United Kingdom. Which makes sense considering how important the financial sector is to the UK economy. So it comes as no surprise that Ripple is considering moving its headquarters to London in the near future.
Ripple in London?
Thus, in an interview with CNBC, Ripple CEO Brad Garlinghouse announced that the company would be considering moving from San Francisco to London. This is because the United States Securities and Exchange Commission (SEC) has not set a clear position regarding XRP, Ripple’s cryptocurrency. So currently Americans don’t know whether the government considers XRP an asset or a currency.
By contrast, in the UK the British regulatory authority, the Financial Conduct Authority (FCA), clearly views XRP as a currency rather than a security. This provides important legal certainty for Ripple, a fundamental boost in its possible decision to move to London.
«What you see in the UK is a clear taxonomy, and the UK FCA took a leading role in characterizing how we should think about these different assets and their use cases. The result of that was the clarity that XRP is not a security and is used as a currency. With that clarity, it would be advantageous for Ripple to operate in the UK.«.
However, Ripple’s decision on its relocation to London would not be final. The company is considering other options such as the United Arab Emirates, Singapore, Switzerland and Japan. In a decision that, if carried out, would significantly weaken the cryptocurrency ecosystem in the United States.