Central Bank of Ireland Approves Ripple as a Virtual Asset Service Provider

Ripple’s Irish subsidiary receives approval from Central Bank of Ireland

Crypto-payments firm Ripple has been granted approval by the Central Bank of Ireland to operate as a Virtual Asset Service Provider. This registration allows Ripple to offer digital asset services in Ireland and potentially across the European Economic Area in the future. Ripple’s general counsel has expressed the possibility of “passporting” its European license to other countries in the bloc.

Ripple has chosen Ireland as its primary base for EU regulation due to the country’s supportive jurisdiction for the virtual assets industry. The Central Bank of Ireland’s approval of Ripple Markets Ireland Limited signifies a positive step for Ripple’s business in the region and boosts confidence in the digital assets, payments, and fintech ecosystem.

Ireland emerges as a favored destination for crypto firms

Ireland’s appeal as a destination for fintech innovation has attracted several crypto firms. Coinbase designated Ireland as its EU hub, while Gemini became the first company to receive a VASP registration in the country. The establishment of an Innovation Hub by the Central Bank of Ireland has facilitated closer interaction between fintech firms and regulators.

Currently, there are 11 registered firms on the Central Bank of Ireland register, including Kraken, Moonpay, and Zodia Markets. The country’s regulatory environment continues to attract cryptocurrency companies seeking expansion opportunities.

Ripple faces regulatory challenges

Ripple’s digital asset XRP was approved for use within the Dubai International Financial Centre by the Dubai Financial Services Authority. However, Ripple has faced regulatory scrutiny in the United States. The SEC filed a lawsuit against Ripple in 2020, alleging that XRP tokens were unregistered securities.

A judge ruled that XRP was not a security on the secondary market but would be considered one when sold to institutional investors. Ripple’s programmatic sales, which involved automatic selling on exchanges, were not deemed securities offerings. The legal battle with the SEC is ongoing.

Hot Take: Ripple Expands Its Presence in Ireland

Crypto-payments firm Ripple has received approval from the Central Bank of Ireland to operate as a Virtual Asset Service Provider in the country. This allows Ripple to provide digital asset services and potentially expand across the European Economic Area. Ireland’s supportive jurisdiction for the virtual assets industry and its commitment to regulatory clarity make it an attractive base for Ripple’s EU operations. The approval signifies a significant step forward for Ripple’s business in the region and boosts confidence in the digital assets, payments, and fintech ecosystem.