Cryptocurrency startup, Ripple, has started considering which countries it might move to if it ends up having to leave the US, since the country still lacks regulatory clarity regarding the crypto industry.
Ripple Labs, also known as just Ripple, is the parent company of one of the world’s largest cryptocurrencies — XRP. It is also a US startup, which puts it in a rather complex position, given the fact that the United States is not known for being particularly crypto-friendly at this point in time.
While the US is slowly opening up to crypto, it is definitely behind most other developed nations, which have already deep into exploring digital currencies.
With the US dragging out the creation of a regulatory framework, Ripple has been focusing on creating partnerships with banks and financial institutions around the world. However, the lack of regulatory clarity still stands in its way of reaching its full potential.
As a result, the company has decided to create a list of its top choices among the countries around the world, and decide where it would try to move if it ends up having to leave the US.
Where would Ripple go?
According to the company, there are multiple choices, as plenty of countries across the world have much better conditions than the United States. Japan, Singapore, the UK, Switzerland, and even the UAE are all potential destinations that Ripple would be willing to consider.
These countries were revealed in a recent interview with Ripple’s CEO, Brad Garlinghouse, himself. Garlinghouse said that these countries are spread across the world, but one thing that they have in common is that their governments have reached some regulatory clarity regarding different cryptos.
The US lacks regulatory clarity, and that is a problem
Meanwhile, the US is clearly lacking any distinction of crypto, specific coins, or even the legal status of cryptocurrencies. Basically, cryptos are only legal because they are not illegal. At the same time, the US regulators continue to debate how should cryptos be classified, in the first place.
Some see them as commodities, while others claim they are property. The US SEC sees most coins as securities, and there were even suggestions that they should be considered currencies, as their very name suggests.
Garlinghouse noted that this is all very bad for growing a business, and that regulation should not be a guessing game. While Ripple is proud to be a US firm, and it would like to be able to stay in the country — the current conditions are not good for the firm or its business.
The opportunity to grow is there if Ripple relocates
So, in order to be able to grow and invest, Ripple might have to leave for a more regulatory-friendly environment, such as the ones in the mentioned countries.
Garlinghouse also noted that the COVID-19 pandemic which struck the entire world this year has given a tailwind to crypto markets. Central banks were promoting fiats, but fiats are inflationary, and printing massive amounts of money to be able to help those who lost their jobs during the pandemic definitely scared a lot of people into turning to cryptocurrencies.
The fact that modern society is turning away from cash and towards digital payment methods is also helping. In other words, firms like Ripple currently have excellent conditions for growth in terms of the state of the world and the mindset of their users. But, the regulatory front remains a major problem, which the company simply cannot ignore anymore.
