London Can’t Become Ripple’s New Home And Here’s Why

London Can’t be Ripple’s new home as the company moved out from San Francisco looking for regulatory clarification for its cryptocurrency XRP. Japan and Singapore are the two other choices as we reading more in our ripple news today.

Ripple considered moving to London because of the regulatory uncertainty in the US but the status of its cryptocurrency is in dispute still. The UK offered Ripple assurance that the coin will not be considered as a security. In an interview with CNBC, CEO Brad Garlinghouse said that the UK Regulator, the Financial Conduct authority provided Ripple with the assurance that it doesn’t consider Ripple’s XRP to be a security as a key source of contention n the market. instead, the FCA deems XRP to be a currency but he said with clarity, it will be advantageous for ripple to operate in London.

The $10 billion fintech company has been considering other jurisdictions and Garlinghouse revealed that the legal status of the XRP cryptocurrency is a key in any decision. Switzerland, Japan, and Singapore are also under consideration.  Ripple has chafed at the US Securities and Exchange Commission stance on crypto and indicated that Bitcoin and ETH are not securities while the status of XRP remains less clear.

The company started fighting a legal battle with the investors who claim that XPR is unregistered and it is issued illegally as security so that Ripple is making misleading statements which Ripple, of course, denied. Being labeled as security will place XRP under stringent rules with heavy repercussions for the coin. While claiming to be independent of the cryptocurrency, the company owns more than half of the XRP in existence. Ripple said it holds the bulk of the funds in escrow and mainly uses the digital asset for the financial services clients to transfer funds cheaply and quickly but it also sells holdings as well. Garlinghouse said:

 “Regulation shouldn’t be a guessing game. You have different pockets of regulation from different parts of the government.”

He also stressed that the company still prefers to stay in the US but praised Japan for its regulatory stance towards crypto contrary to the situation in the United States. Japan has considered as Ripple’s fastest-growing market thanks to the close ties with Japan’s SBI holdings. It now seems that London can’t be Ripple’s new home as he was disappointed that XRP was not selected by PayPal which recently announced support for four cryptocurrencies but he blamed regulatory uncertainty again. He made his remarks after Ripple’s executive chairman Chris Larsen suggested that the company will abandon the states.