Ripple is reportedly considering moving its operational base from San Francisco to London due to an unfavorable US regulatory environment.
Ripple founder Brad Garlinghouse says it’s because the UK’s Financial Conduct Authority doesn’t classify XRP as a security
Japan, Singapore, Switzerland and the United Arab Emirates are also under consideration.
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Ripple founder Brad Garlinghouse has revealed that the company is considering moving its headquarters from San Francisco to London.
Speaking to CNBC on October 23, he said the move was due to the difference in the regulatory environments of the two countries.
The United States Securities and Exchange Commission (SEC) has not taken a concrete position on whether it views XRP as a security or a currency. This is made worse by an ongoing legal battle between Ripple and several crypto investors who argue that its sales of XRP correspond to unregistered securities.
Crypto firm Ripple plans to move to London due to US regulations
“UK offers a clear taxonomy”
Garlinghouse believes that the UK’s Financial Conduct Authority (FCA) position on XRP is sufficiently clear and advantageous to warrant a possible relocation to London.
The FCA currently classifies XRP as a currency instead of a security, which is especially important given that Ripple’s entire use case for XRP would be compromised if classified as security.
Explaining his preference for the UK regulatory environment at CNBC, Garlinghouse explained:
“What you see in the UK is a clear taxonomy, and the UK FCA has taken a leadership role in characterizing how we should think about these different assets and their use cases. The result of this was the clarity that XRP is not a security and is used as a currency. With this clarity, it would be advantageous for Ripple to operate in the UK. “
Speaking at the LA Blockchain Summit on October 6, Ripple co-founder Chris Larsen alluded to Garlinghouse’s frustrations when he revealed that the company was considering moving to Singapore in an effort to get out of its quagmire. US regulatory.
According to Garlinghouse, other jurisdictions vying to become Ripple’s new global base of operations outside of the UK and Singapore include the UAE, Switzerland and Japan.