Ripple has obtained approval from the UK's Financial Conduct Authority (FCA) to operate as an electronic money institution (EMI), Cointelegraph reported on Jan. 9.
The FCA registered Ripple's UK subsidiary, Ripple Markets UK, as an electronic money institution and also included it under the Money Laundering Regulations (MLRs). Cointelegraph said this would be an important turning point for Ripple to issue its stablecoin, Ripple USD (RLUSD).
The approval came as the FCA introduced a new crypto licensing regime and announced a rule requiring firms registered under the MLRs to secure full approval under the Financial Services and Markets Act (FSMA) by October 2027.
Ripple Markets UK still faces some restrictions. The FCA specified that Ripple Markets UK cannot provide services related to crypto ATMs, offer services to retail customers or appoint agents and distributors. It also cannot provide electronic money issuance and payment services for consumers, small businesses and charities.
Chi-gyu Hwang
delight@d-today.co.kr