Ripple is Seeking a License in Ireland to Propel Its EU Expansion

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Last Updated on November 18, 2022 by Bitfinsider

Ripple, a U.S.-based cryptocurrency corporation, no longer receives the majority of its revenue from the United States and is seeking to increase its presence in Europe, according to its chief attorney.

In an interview with Bitfinsider earlier this week, Ripple General Counsel Stuart Alderoty stated that “essentially, Ripple is operating outside of the United States” as a result of the company’s protracted legal battle with the Securities and Exchange Commission.

“Essentially, all of its clients and revenue come from outside the U.S., despite the fact that we still have a large number of people in the country,” he continued.

Ripple is simultaneously extending its influence in Europe.

Currently, the startup has two workers located in the Republic of Ireland. Alderoty informed Bitfinsider that the company is seeking a virtual asset service provider (VASP) license from the Irish central bank in order to “export” its services throughout the European Union via a business domiciled in Ireland.

Ripple also intends to submit an application for an e-money license in Ireland “soon.” It is committed to investing in Europe despite a “crypto winter”-like decline in the cryptocurrency markets.

Gemini was previously granted a VASP license by the Irish central bank.

Ripple, a company that uses blockchain technology to enable financial institutions move money around the world, has approximately 750 workers worldwide, with roughly half of them located in the United States. Alderoty visited the London headquarters last week during a trip to the United Kingdom for the company’s annual Swell event.

Wednesday, Brad Garlinghouse, CEO of Ripple, told Bitfinsider that the notion that cryptocurrencies are unregulated is “overstated.” But, he noted, “transparency inspires confidence.”

Alderoty said that it is unlikely that Ripple will reference the FTX crash and how it was handled by regulators in its case.

A portion of the uncertainty surrounding XRP arises from the fact that the corporation partially owns the coin. Ripple historically held up to 60% of the circulating XRP tokens. According to Alderoty, this percentage has been reduced to below half, or 49%.

Ripple obtains a portion of its revenue from the sale of XRP on the open market. Alderoty stated that throughout the past three years, XRP has been offered exclusively to enterprise customers and not to retail dealers.

As a private corporation, Ripple does not publicly reveal its income. This year, the company processed $10 billion in cross-border transactions with payment providers and other financial institutions using XRP, a coin with which it has a tight relationship.

Investors last estimated the worth of Ripple at $15 billion. XRP has a market cap of $19 billion, according to statistics from CoinMarketCap.

In preparation of the EU’s MiCA crypto legislation putting into effect across the future years, Ripple is expanding in Europe. MiCA intends to harmonize crypto asset regulations across the 27-member EU. It was passed earlier this year by EU legislators.

The EU has stated that a separate framework for nonfungible tokens, or NFTs, a unique sort of digital asset that tracks ownership of art and other assets on the blockchain, may still be necessary.

Alderoty stated, “I believe MiCA is a solid beginning.”

The United Kingdom is likewise a priority. Monday, Ripple presented a series of principles describing how it believes the United Kingdom should regulate cryptocurrencies.

A bill is currently making its way through the U.K. Parliament that would provide the financial regulator with additional control of cryptocurrencies, but it has not yet become law.

Crypto CEOs hope that Prime Minister Rishi Sunak, a proponent of cryptocurrencies and the so-called “Web3,” will provide regulatory certainty to make Nepal a more attractive location for enterprises to locate.

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