A statement by Ripple Labs’ top lawyer, General Counsel Stuart Alderoty implies that blockchain payment firm Ripple Labs is looking to expand its presence in the European Union (EU).
According to Alderoty, Ripple plans to ‘passport’ its services through a local entity in Ireland after it must have secured a regulatory license from the watchdog in the region. This is new for Ripple as it is moving its attention to countries outside the United States where it is domiciled.
“Essentially, its customers and its revenue are all driven outside of the U.S., even though we still have a lot of employees inside of the U.S.,” the lawyer added.
Alderoty confirmed that Ripple is running its business outside the U.S due to its ongoing legal battle with the U.S Securities and Exchange Commission (SEC) for selling XRP as unregulated securities. The watchdog called this case, which has been ongoing for up to two years, a violation of its securities law.
Ripple Faced With SEC Securities Law Violation
Meanwhile, Ripple argued that the XRP cryptocurrency should not be regarded as securities.
Rather, the tokens were only designed to facilitate cross-border payments for transactions on which its business is hinged. The lawsuit has dragged on for a long while to the extent that both entities have requested a summary judgement to finally settle the lawsuit as soon as possible.
For now, the court has approved several amicus briefs for the lawsuit, some in favour of SEC and a majority in support of Ripple Labs amongst which is that of Coinbase.
Some others like Reaper Financial, Accredify Inc (DBA InvestReady), New Sports Economy Institute (NSEI), Blockchain Association (the Association), and Paradigm Operations also got their motions approved.
Currently, the crypto payment firm has two employees who are already on the ground in the Republic of Ireland. Ripple Labs is now seeking a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland, the financial regulatory watchdog in the jurisdiction.
In addition, Ripple intends to apply for an electronic money license in Ireland shortly after securing the VASP license. Worthy of applause, the EU seem to be upgrading its regulations and is still expecting the Markets in Crypto Assets (MiCA) bill which will bring in strict regulations in its 27-member states.