Ripple Considering Moving its HQ to the U.K. Over Unclear U.S. Regulation on XRP

News / 23.10.2020

San Francisco-based financial technology company Ripple is considering moving its headquarters from the United States to a crypto-friendly region, like London, CEO Brad Garlinghouse told CNBC today. 

For one thing, Ripple has been facing legal battles from some investors who alleged that XRP is an illegally issued security. 

With the Securities and Exchange Commission (SEC) failing to clarify the matter, Garlinghouse and his team believe leaving the country could be the next best move for the $10 billion company. 

Regulation Not A Guessing Game

The CEO earlier noted that U.S. regulators lack a single regulatory framework for cryptocurrencies. The regulatory bodies have different views on whether cryptocurrencies are a currency, commodity, property, or security. “Regulation shouldn’t be a guessing game,” he said.

Garlinghouse further noted that the U.S. authorities have already made decisions that put U.S. companies at a disadvantage while favoring Chinese technologies. 

“The lack of a single national regulatory framework is putting U.S. innovation and U.S. companies at a significant disadvantage,” he said. 

Speaking to CNBC, the CEO noted that the United Kingdom has a clearer regulation regarding digital assets and their use cases.  

XRP Not A Security In The U.K.

“What you see in the U.K. is a clear taxonomy, and the U.K.’s FCA took a leadership role in characterizing how we should think about these different assets and their use cases,” he said. 

Since the U.K. taxonomy clarifies that XRP is a currency and not a security, Garlinghouse noted that “it would be advantageous for Ripple to operate in the U.K.”

Other countries on Ripple’s shortlist for a potential move abroad include Switzerland, Singapore, Japan, and the United Arab Emirates because of their friendlier crypto regulations.  

“The U.S. is out of sync with other G20 markets – Ripple must have a level playing field to compete on a global stage. The U.K., Singapore, Japan, Switzerland, and UAE are at the top of our list because they’re providing clarity and consistency.”

Ripple’s desire to move its headquarters outside the U.S. was first revealed by the company’s co-founder and chairman, Chris Larsen, during an interview with Fortune Magazine earlier this month. 

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.