Ripple, one of the most important companies in the crypto world, would be thinking of moving its headquarters from San Francisco to London.
The importance of regulations for the development of the crypto world cannot be overstated. Because without clear rules of the game, no business, including cryptomongering, can develop properly. This has become very clear after the latest statements from Ripple’s CEO, Brad Garlinghouse, who has commented that Ripple could move to London due to UK regulations.
Regulations for the crypto world
One of the major demands of the crypto community in recent years is the need for adequate regulations for the development of crypto world. Well, until now, businesses related to Blockchain technology have operated in a regulatory vacuum. Operating with obsolete and inadequate laws for this new industry, or without any law at all.
This of course generates an important level of legal defenselessness for these companies. These companies, faced with any problem with users, criminals or other companies, do not have adequate state protection to guarantee their ownership and the operation of their business model.
For this reason, several countries have already begun to develop crypto-friendly legislation for companies such as Bitcoin Millionaire. With the aim of attracting as many of them as possible to set up in their territory. This will eventually translate into more jobs for the country’s citizens, higher tax revenues, and a significant advance in the technological expertise of the population.
And one of the countries that has made the greatest effort in this regard is the United Kingdom. This makes sense considering the importance of the financial sector to the UK economy. So it’s not surprising that Ripple is considering moving its headquarters to London in the near future.
Ripple in London?
In an interview with CNBC, Ripple’s CEO Brad Garlinghouse announced that the company was considering moving from San Francisco to London. This is due to the fact that the US Securities and Exchange Commission (SEC) has not established a clear position with respect to XRP, Ripple’s crypto currency. So at present Americans do not know whether the government considers XRP an asset or a currency.
In contrast, in the UK the UK regulatory authority, the Financial Conduct Authority (FCA), clearly considers XRP a currency rather than a security. This provides important legal certainty to Ripple, which was a major impetus 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 characterising how we should think about these different assets and their use cases. The result of that was the clarity that XRP is not a value 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. A decision that, if implemented, would significantly weaken the cryptosystem in the United States.