Ripple (CRYPTO:XRP), a top blockchain company, announced on Thursday that it has received preliminary regulatory approval to conduct its operations in Singapore. This is certainly a positive development for the cryptocurrency industry worldwide, as it is facing stricter regulations in the U.S.
The Monetary Authority of Singapore, the country’s central bank, has granted Ripple in-principle approval for a Major Payment Institution License, according to Ripple.
The San Francisco-based crypto firm, which is primarily recognized for its cryptocurrency XRP and blockchain-based interbank messaging services, said that the granting of the license will allow them to provide regulated digital payment token services and products to its customers, which include banks and financial institutions. They will also be able to expand cross-border transfers of XRP.
“Singapore is a leading global financial center, and a prominent gateway to business in Asia Pacific. We’re incredibly proud to receive an in-principle license from the MAS, reaffirming our commitment to the region and ongoing proactive engagement with regulators globally,” said in a statement Brad Garlinghouse, Chief Executive Officer of Ripple.
Ripple’s liquidity service operates by utilizing XRP as an intermediary currency between different currencies. This enables banks and payment providers to carry out cross-border transactions more swiftly than through traditional payment channels.
The fintech company also operates a blockchain-based messaging system called RippleNet, which enables large fund transfers between different financial institutions like SWIFT – the global interbank messaging system.
Ripple continues to spar with the SEC
Ripple has been embroiled in a legal battle with the US Securities and Exchange Commission (SEC) since December 2020. The SEC alleges that Ripple’s sale of XRP tokens constitutes an unregistered securities offering, and that Ripple and its executives — co-founder Christian Larsen and CEO Brad Garlinghouse — engaged in illegal sales of XRP worth over $1.3 billion.
Ripple has denied these allegations and argues that XRP is a currency, not a security, and therefore falls outside the SEC’s jurisdiction. The legal proceedings have caused significant uncertainty for Ripple and for XRP investors, as the outcome of the case could impact the future regulation and use of cryptocurrencies in the United States.
Ripple has identified Singapore as one of its major currency corridors for cross-border money transfer using XRP, the company said in a press release.
Price Action
At last check, the $27 billion market cap cryptocurrency has retraced above the $0.50 level, printing 2.65% higher intraday and 7.50% week over week.
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