Ripple Secures UK Regulatory Approval Amid New Licensing Requirements

According to Cointelegraph, Ripple has expanded its regulatory presence in the United Kingdom by obtaining authorization from the Financial Conduct Authority (FCA). Ripple's UK subsidiary, Ripple Markets UK, has been granted an Electronic Money Institution (EMI) registration and is now registered under the UK's Money Laundering Regulations (MLRs), as per official records. This EMI license enables Ripple to offer payment services and issue electronic money, potentially influencing its stablecoin, Ripple USD (RLUSD). The FCA's approval coincides with the establishment of a timeline for a new crypto licensing regime, mandating MLR-registered firms to seek full authorization under the Financial Services and Markets Act (FSMA) by October 2027. Despite the EMI registration, Ripple Markets UK faces certain restrictions and requires further FCA approval. The company is prohibited from providing services involving crypto ATMs, offering services to retail clients, or appointing agents or distributors without prior written consent from the authority. Additionally, Ripple is restricted from issuing electronic money or providing payment services to consumers, micro-enterprises, or charities. This development follows comments from Ripple Labs president Monica Long, who stated that the company does not intend to pursue an initial public offering (IPO) in the near future. Long reiterated the company's decision to remain private, echoing her remarks from November after a fundraising round that valued Ripple at $40 billion. Cointelegraph reached out to Ripple for comments on the FCA's approval but had not received a response at the time of publication.