Ripple's (XRP) UK subsidiary secured registration with the Financial Conduct Authority under money laundering regulations Friday.
The registration allows certain cryptocurrency activities but stops short of full financial services authorization.
What Happened
Ripple Markets UK Ltd. gained approval under Money Laundering Regulations that have governed cryptocurrency firms since 2020.
The UK will open a new cryptocurrency licensing gateway in September 2026 ahead of comprehensive regulations taking effect October 25, 2027.
All firms currently registered under money laundering rules must apply for fresh authorization under the Financial Services and Markets Act.
The FCA explicitly stated that existing registrations will not automatically convert, requiring all cryptocurrency firms to secure new approvals.
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Why It Matters
XRP traded near $2.10 Friday as the token tested critical support levels following the regulatory announcement.
Futures open interest declined to $4.15 billion from $4.55 billion Tuesday, indicating softening retail demand despite XRP ETFs recording nearly $9 million in Thursday inflows after Wednesday's $41 million outflow.
Ripple's registration demonstrates the company's commitment to operating in regulated markets following its prolonged legal battle with the U.S. Securities and Exchange Commission.
The timing highlights a critical transition as the UK shifts from basic anti-money laundering oversight to comprehensive financial services regulation.
Companies missing the September 2026 application window face restrictions on launching new products during transitional periods.
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