Ripple’s XRP Finally Receives The Long-Awaited Regulatory Clarity
It was recently reported that Ripple found itself in hot waters again regarding the nature of XRP.
Just the other day, we were reporting that there’s a group of investors who have just filed an amendment to their lawsuit against Ripple and this accuses the company of selling XRP as an unregistered security.
This new filing is the very first one since Ripple had to fight four cases against it. The company has to file a response until September 19th.
UK’s Financial Conduct Authority offers clarity for XRP
Now, Ripple’s global head of government relations said that final guidance that’s been issued by the UK’s Financial Conduct Authority provides long-awaited regulatory clarity for XRP in the country.
On July 31st the FCA published its final guidance defining which crypto asset activities it regulates.
It lists XRP alongside Bitcoin and Ethereum, which have both been declared by the agency as exchange tokens – not securities.
“The FCA is therefore publishing the Final Guidance as consulted on with some amendments to provide greater clarity on what is and isn’t regulated. This includes making the important distinction as to which cryptoassets fall inside the regulatory perimeter clearer,” according to official notes.
The notes continue and detail that “Consumers should be mindful of the absence of certain regulatory protections when considering purchasing unregulated cryptoassets. Unregulated cryptoassets (e.g. Bitcoin, Ether, XRP etc.) are not covered by the Financial Services Compensation Scheme and consumers do not have recourse to the Financial Ombudsman Service.”
Ripple’s Michelle Bond first brought this new document to light on Twitter.
“This is exactly the kind of regulatory clarity the industry needs,” she says among others.
.@TheFCA now lists XRP in the company of BTC and ETH, both of which were previously classified as exchange and/or utility tokens (and not a security token). This is exactly the kind of regulatory clarity the industry needs. https://t.co/lCr3Bm0JRk https://t.co/RI8rea7MaK
— Michelle Bond (@michellebond111) August 12, 2019
This is great for the San Francisco-based company and for XRP as well.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.