UK Financial Conduct Authority (FCA) Does Not Consider Ripple’s XRP to Be a Security
In a recent video released by the UK’s Financial Conduct Authority, the regulatory body compares XRP to Ethereum. Both can be used both for payment and as a utility token.
Concerns over Ripple’s XRP being a security token have been present online for years now. Only two cryptocurrencies, Bitcoin and Ethereum, have been confirmed to not be considered securities. Yet, we can now add a third one to the mix (at least according to the FCA): Ripple’s XRP.
That’s right, it seems that XRP is on par with Ethereum in how it will be classified and regulated. The FCA released a video recently comparing the two cryptocurrencies, an elaboration of what was already mentioned in their July consultation paper.
“Tokens may have mixed features that may overlap with the above categories, or change over time. For example, Ether can be used as a means of ‘payment’ (exchange token) on the Ethereum platform, and can also be used to run applications (utility token). XRP has similar features.”
Last month the CEO of Ripple, Brad Garlinghouse, write an open letter imploring the US Congress to impose a clearer regulatory framework which ensures innovation in the cryptocurrency space. The company also recently made a high-profile investment in MoneyGram for $30M.
The FCA has been very active in clarifying their crypto-guidelines this year. In June, the body approved the country’s first security token platform.
Do you believe the speculation surrounding XRP being a security is now resolved? Let us know your thoughts below in the comments.
Image courtesy of Elevenews.