Ripple Aims for a License in Ireland To Hasten Its EU Expansion

Ripple, a crypto firm based in the United States, is trying to expand its influence in Europe, according to its senior lawyer.

Ripple General Counsel Stuart Alderoty stated in an interview with CNBC earlier this week that “effectively, Ripple is operating outside of the U.S.” today as a result of the fallout from its lengthy legal battle with the Securities and Exchange Commission.

“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.,”

Currently, the startup has two employees on the ground in the Republic of Ireland. It is attempting to obtain a virtual asset service provider (VASP) license from the Irish central bank to “passport” its services throughout the European Union through a corporation established in Ireland.

Ripple also intends to apply for an electronic money license in Ireland “shortly.” Its decision to invest in Europe comes despite a severe dip in crypto markets known as “crypto winter.”

Gemini was previously granted a VASP license by the Irish central bank. Ripple, which uses blockchain technology to enable financial institutions to move money around the world, has approximately 750 workers worldwide, with roughly half of them headquartered in the United States.

Around 60 people work in its London office, which Alderoty visited this week while in the country for its annual Swell event. The Securities and Exchange Commission filed a lawsuit against Ripple in 2020, stating that the business and its officials illegally offered XRP, a cryptocurrency created by its inventors in 2012, to investors without first registering it as a security.

Ripple rejects the claim, claiming that cryptocurrency is not an investment contract and that it is utilized in its business to facilitate cross-border transactions between banks and other financial institutions.

Alderoty anticipates a decision on the matter in the first half of 2023. Final legal briefs are due by November 30, following which a judge can either rule or refer the case to a jury trial if there are any issues of disputed fact.

XRP was previously the third-largest cryptocurrency, with a market cap of $120 billion in early 2018. It has now declined substantially, owing to governmental scrutiny in the United States and a general decline in Bitcoin and other digital currencies.

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