Ripple, a financial and technological company worth about $10 billion, which is best known for its XRP cryptocurrency, is considering moving its headquarters abroad due to dissatisfaction with the US legal framework.
San Francisco crypto company CEO Brad Garlinghouse, who said he visited London last month, told CNBC that the UK Financial Regulatory and Oversight Authority (FCA) does not consider XRP a security, which is a key source of division He added that other regions provided similar assurances.
“What you see in the UK is a clear classification, and the UK FCA has taken the lead in determining how we should think about these alternative assets and their use options,” Garlinghouse said.
“The result of this was the clarity that XRP is not a security and is used as a currency. With this approach, it would be beneficial for Ripple to work in the UK. “
Garlinghouse said that in addition to the UK, Switzerland, Singapore, Japan and the United Arab Emirates are also seen as countries for Ripple’s possible move abroad.
“The United States is not synchronized with other markets G20 and with how some of them think about these rules,” he added.
Chris Larsen, co-founder and executive chairman of Ripple, first announced the company’s desire to move its global headquarters outside the United States in an interview with Fortune magazine earlier this month.
Ripple was involved in litigation with some investors who invested in cryptocurrency, who accuse it of selling unregistered securities and misleading statements about the essence of XRP. The company disputes the allegations, insisting that the XRP cryptocurrency is not and should not be classified as a security.
Meanwhile, officials of the US Securities and Exchange Commission (SEC) said that cryptocurrencies such as Bitcoin and Ethereum are not securities that should be regulated in the same way as stocks and bonds. But the status of XRP has not yet been confirmed.
The “security” label is critical because it can cause XRP to follow strict new rules, and this can greatly affect Ripple. Despite the fact that the company claims that it is independent of cryptocurrency, Ripple owns 55 billion of the 100 billion existing XRP tokens. The company even receives revenue from the sale of some of its XRP assets every quarter.
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