While cryptocurrencies may have initially started with a revolutionary idea about decentralized financial systems, most cryptos are now looking for ways to enter the mainstream. However, for that to happen, there needs to be regulatory clarity, and once it is achieved, then regulated cryptocurrencies can manage to attract investments from institutional investors.
Over the past months, the regulatory bodies in the United States have expressed skepticism towards cryptocurrencies at large and even the President urged Facebook to apply for a bank license if it wanted to launch its cryptocurrency Libra.
Bullish for Ripple
However, it seems that across the pond in the United Kingdom, things are far more welcoming for cryptos. It has now emerged that in addition to Bitcoin and Ethereum, Ripple (XRP) has got regulatory clarify from the concerned body in the UK.
The Financial Conduct Authority is now in charge of the whole process, and according to reports, it has been revealed that Ripple’s XRP is going to be classified as a utility token. It goes without saying that this would be a significant development for the crypto sphere since the classification of a security token could spell doomsday for the cryptocurrency in question. The news has been revealed by the Head of Government Relations at Ripple Michelle Bond.
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In the last published report by the Financial Conduct Authority, the British regulator classified XRP as a utility token. It is important to note that had it been declared a security token, then the token would have come under more regulatory scrutiny and that would definitely have resulted in a sell-off from the current holders.
XRP has long been the crypto with the third-biggest market cap, and over the course of the past few years, Ripple has struck up important partnerships by way of which the crypto was tested. It will be interesting to see how the price of XRP reacts to this significant piece of news.
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