Ripple, the blockchain company behind the XRP Ledger, is on its way to regulatory approval in the European Union (EU) via licensing in Luxembourg.The San Francisco, California-based firm received a preliminary green light for a Crypto Asset Service Provider (CASP) license from the country’s Commission de Surveillance du Secteur Financier (CSSF) under the EU’s Markets in Crypto Assets (MiCA) regulation, Ripple said Tuesday.A license would enable Ripple to offer its stablecoin payment systems to European companies and allow it to expand into broader crypto functions, according to the announcement.MiCA allows companies that receive approval in one EU state to offer cryptocurrency services across the bloc. The regime was one of the first comprehensive regulatory frameworks for cryptocurrency in a major market when it was voted into law in 2023, but there has been signs this year that the honeymoon period is coming to an end. The European Commission, the EU’s executive branch, opened a consultation last month to assess if MiCA is still fit for purpose.Among the concerns about MiCA’s shortcomings is criticism over stablecoin rules, relating to a blanket ban on offering interest and reserve requirements that demand issuers hold as much as 60% of backing assets in cash deposits at commercial banks.
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Ripple secured preliminary MiCA approval across all 30 EU countries Monday while XRP (CRYPTO: XRP) plunged to $1.10, down 10% over the past week. Ripple’s...
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