Ripple's Subsidiary Receives Official Recognition from Central Bank of Ireland

Wednesday, 20/12/2023 | 09:27 GMT by Tareq Sikder

The firm plans to expand services in the European Economic Area under MiCA regulations in late 2024.

Additionally, it is seeking registration as a crypto asset firm with the UK’s FCA.

central-bank Ireland — Finance Magnates, Central Bank of Ireland

The Central Bank of Ireland has officially recognized Ripple, the company behind the cryptocurrency XRP, by including its Irish subsidiary, Ripple Markets Ireland Limited, in the list of registered Virtual Asset Service Providers (VASP).

Ireland Embraces Ripple: Central Bank Approval for VASP Status

Ripple Markets Ireland Limited will now be authorized to offer specific digital asset services within Ireland as a registered VASP, according to a statement released by the company. Moreover, Ripple expressed its intention to extend its services to clients across the European Economic Area once the Markets in Crypto Assets Regulation (MiCA) takes effect by the end of 2024.

Eric van Miltenburg, Senior Executive at Ripple — Eric van Miltenburg, Senior Executive, Ripple, Source: LinkedIn

The MiCA legislation, established within the European Union, is designed to regulate virtual asset providers operating in the region. Ripple's strategic move to register as a VASP aligns with its broader efforts to comply with regulatory frameworks, especially in the aftermath of the U.S. Securities and Exchange Commission's lawsuit in December 2020, alleging violations of federal securities laws.

Contrary to common perceptions, Ripple has actively pursued expansion in various jurisdictions outside the United States. The company has been operational in Ireland since 2022, with its office located in Dublin. Additionally, Ripple is currently in the process of seeking registration as a crypto asset firm with the UK’s Financial Conduct Authority.

Eric van Miltenburg, a senior executive at Ripple, emphasized the positive impact of regulatory clarity on the digital assets, payments, and fintech ecosystem. He stated: "By providing regulatory clarity for the industry, Ireland – and the EU more broadly – are boosting confidence in the digital assets, payments, and fintech ecosystem."

Licensing Advances in Singapore, Dubai, and the US

In June 2023, Ripple successfully obtained the Major Payments Institution License application from Singapore’s central bank, the Monetary Authority of Singapore. Additionally, the Dubai Financial Services Authority has recently given its nod for the utilization of XRP tokens within the Dubai International Financial Centre ecosystem. In the United States, Ripple revealed that it accomplished the acquisition of the majority of its 35 money transmitter licenses in the year 2023.