Ripple Secures Virtual Asset Service Provider License from Central Bank of Ireland
Blockchain payments company Ripple has successfully obtained a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland (CBI). This achievement comes after Ripple opened an office in Dublin and applied for the license over a year ago, with the goal of expanding its operations in Europe. The Central Bank of Ireland initiated the registration process for the VASP license in 2021 to ensure compliance with anti-money laundering and counter-terrorism financing regulations. Now that Ripple has met all regulatory requirements, its Irish arm can offer various digital asset services to investors within Ireland.
Ripple Plans to Extend Services across Europe
Ripple aims to extend its services to clients throughout the European Economic Area once the Markets in Crypto Assets Regulation (MiCA) becomes effective next year. Unlike national licenses, MiCA allows companies to operate across all 27 European Union member states using a single license obtained in one country. This regulatory framework was proposed by the European Union to establish guidelines for the cryptocurrency market in the region. Ripple’s recent approval in Ireland and expansion into Europe align with its broader strategy to grow its international business.
Ripple’s Legal Victory Against SEC
In May, a US court ruled in favor of Ripple in an ongoing lawsuit brought by the Securities and Exchange Commission (SEC). The court stated that selling XRP on exchanges does not constitute an investment contract. However, it also ruled that XRP is a security when sold to institutional investors, as it meets the conditions set in the Howey Test. While many celebrate Ripple’s partial win, experts believe the fight for regulatory clarity is far from over. The SEC is currently reviewing the decision and may challenge it, indicating that further legal battles may lie ahead.
Hot Take: Ripple Expands its Influence in Europe
Ripple’s successful acquisition of a VASP license from the Central Bank of Ireland marks a significant milestone for the company’s business in the region. This regulatory approval allows Ripple to offer digital asset services to investors within Ireland and sets the stage for its expansion across Europe. By obtaining a license that aligns with the upcoming MiCA regulations, Ripple positions itself as a major player in the European cryptocurrency market. However, the legal victory against the SEC does not guarantee smooth sailing for Ripple, as regulatory challenges and ongoing debates over cryptocurrency classification continue to shape the industry.
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