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Ripple is going to leave the United States due to excessive regulation of cryptocurrencies

Oct 7, 2020 | News
Ripple is going to leave the United States due to excessive regulation of cryptocurrencies

On October 6, 2020, at the Blockchain Summit in Los Angeles, USA, it became known that the Ripple - a cryptocurrency platform for payment systems, plans to transfer its activities to Europe or Asia. This was announced by its co-founder, Chris Larsen.

He stated that: "The US has terrible problems with the next generation financial systems, and blockchain, cryptocurrencies and digital assets are generally discouraged."

"Therefore, we are seriously considering relocating our headquarters to countries with clearer and more loyal laws."

Major alternatives included Singapore, Japan, UK and Switzerland.

This initiative was approved by the founder of TechCrunch - Michael Arrington. He also believes that problems with the clarity of regulation of cryptocurrencies are a real "financial disaster" for the United States.

Ripple CEO Brad Garlinhouse agrees with this too. He believes that so many promising projects related to the worldwide network have been created in the United States only because it was clear how this area was regulated. And that blockchain technologies with cryptocurrencies deserve the same treatment.

“We're not looking for a way to get around the system - we just want to play by clear and well-defined rules,” Garlinhouse said.

It should be borne in mind, however, that the company has been suing some of its investors since 2018, who reproach the company for distributing unregistered securities under the guise of its XRP tokens. And in May 2020, an additional lawsuit was filed from Bitcoin Manipulation Abatement LLC of about the same content - they say Ripple violates federal legislation on securities. However, the company's lawyers are trying to challenge these claims as unfounded. But the mentioned “lack of clarity in the matter of regulation” hinders them.

Considering that Ripple is one of the ten most successful cryptocurrencies in terms of capitalization, and also provides a higher speed of work than Ethereum and Bitcoin, it's relocation to Europe or Asia can play a significant role in resisting the dominance of the dollar in the international cryptocurrency space.

Published on the EXBASE based on materials from forklog.com