FCA authorization expands payment capabilities while limiting certain crypto services
Blockchain payments company Ripple has strengthened its regulatory position in the United Kingdom after its local subsidiary received formal approval from the country’s financial regulator. The move marks a significant step in Ripple’s efforts to operate within established regulatory frameworks while expanding its global payments infrastructure.
FCA Grants Electronic Money Institution Status
The Financial Conduct Authority (FCA) approved Ripple Markets UK as an Electronic Money Institution (EMI) and registered the entity under the Money Laundering Regulations. This authorization allows the subsidiary to provide payment services and issue electronic money, a development that could support Ripple’s broader stablecoin and payment initiatives, including Ripple USD (RLUSD).
The approval comes as UK regulators outlined a transition timeline requiring MLR-registered crypto firms to seek full authorization under the Financial Services and Markets Act by October 2027.
Operational Limits Remain in Place
Despite the authorization, Ripple Markets UK faces restrictions on certain crypto-related activities. The subsidiary cannot offer services to retail clients, operate crypto ATMs, appoint agents, or provide electronic money services to consumers, charities, or micro-enterprises without further regulatory consent.
The regulatory progress follows confirmation that Ripple intends to remain privately held, even after a recent funding round valued the company at $40 billion. The UK approval highlights Ripple’s strategy of regulatory alignment over rapid expansion as it builds compliant global payment infrastructure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.