Ripple Files for UK Crypto License After Partial SEC Victory

Source: AdobeStock / Michal Šteflovic

Blockchain-based digital payment network Vibe has applied for a cryptographic license in the United Kingdom and Ireland after their partial victory against the USA. National Stock Market Commission.

sendi youngRipple UK & Europe Managing Director, Has revealed that the company “very recently” applied for crypto asset company registration with the UK FCA, along with a payment institution license in Ireland.

The move came after a US court ruled in favor of Ripple in the ongoing lawsuit filed by the SEC, alleging that selling XRP on exchanges does not in itself constitute an investment contract.

The judgment, delivered by the District Court for the Southern District of New Yorkstated that the “offering and selling of XRP on digital asset exchanges did not equate to offering and selling of investment contracts.”

However, the federal judge also ruled that XRP it is a security when it was sold to institutional investors because it met the conditions set out in the Howey test.

Young called the decision a “great victory” and “positive for [the company’s] growth in the United States.

“We haven’t turned around and said, ‘Let’s stop hiring in the UK.’ Our growth strategy and plans are intact and in place,” she said, adding:

“We are in the process of applying for our UK crypto asset registration and our Irish payments license. All of these are massive investments with the prospect that we are going to continue to grow exponentially in this region.”

It is worth noting that Ripple has already significantly increased its presence in the UK and Europe.

Over the last 18 months, the company has increased its workforce in the UK and Europe by approximately 75% and now has more than 100 of its 900 global employees in its offices in London, Dublin and Reykjavik, Iceland.

Did Ripple really win against the SEC?

While many crypto experts rejoiced in Ripple’s recent partial victory, others noted that the industry’s fight for regulatory clarity is likely far from over.

Preston Byrne, a partner at Brown Rudnick and a crypto entrepreneur, said that the SEC is currently reviewing the decision, claiming that the agency could challenge the ruling.

“Obviously, Ripple’s summary judgment is not the last word on the matter,” Byrne said in a recent tweet, noting that even if Ripple accepts victory, the firm still “gets billions of dollars in institutional sales that they’re on the hook for.”

Others also claimed that summary judgment may not have a strong foundation and may not result in the desired change in how the SEC treats the crypto industry.

Joe Castelluccio, Fintech group leader at law firm Mayer Brown, said the SEC will likely highlight parts of the court decision that support its views on coins and tokens as securities.