Ripple has received full authorisation as an electronic money institution in the EU from Luxembourg’s financial regulator CSSF, strengthening its focus on regulated payment services and blockchain infrastructure in Europe.
Ripple is a blockchain-focused fintech company that provides payment and infrastructure solutions to banks and other financial players globally. The new licence from Luxembourg gives the company a clearer regulatory foothold in the EU, at a time when more digital players are seeking formal approval for services that have previously been in a grey area.
Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), has granted Ripple full approval as an Electronic Money Institution (EMI), according to a press release. The licence comes after a period of preliminary approval, during which the company has had to meet a number of conditions before final concession could be granted.
With the EMI license, Ripple can operate as an electronic money issuer and provide payment services within EU regulations, based in Luxembourg. The company maintains that this lays the foundation for further development and distribution of Ripple Payments across European markets.
Ripple describes Europe as one of its key growth areas. According to the company, the goal is to provide the infrastructure that will make it easier for European businesses to adopt digital and blockchain-based solutions in payment intermediation.
“Securing our full EMI license in the EU is a transformative milestone that reinforces Ripple's presence at the heart of European finance,” said Cassie Craddock, Managing Director for UK & Europe at Ripple. She points out that the approval should enable regulated, blockchain-based services to be delivered to more customers across the EU, and support the transition to more digital and efficient financial solutions.
The new EU license comes at the same time as Ripple is building up a broader portfolio of regulatory approvals internationally. Among other things, the company notes that it has recently obtained both an EMI license and registration for crypto assets from the UK's financial regulator, the Financial Conduct Authority (FCA).
In total, Ripple states that the company now holds over 75 regulatory licenses globally. According to the company, this differentiates them from many other digital asset players and should make it easier to provide services to banks and institutions looking to transition from legacy systems to new digital infrastructure.
With an EMI license in the European Union and multiple approvals in other jurisdictions, Ripple positions itself as a player betting on regulated solutions in a market characterized by increasing regulatory focus, the press release said. The company believes that the scope of licenses provides an advantage when financial institutions should consider partners in blockchain and digital assets.
How the license will affect the availability and use of Ripple Payments in different EU countries will depend on how the company chooses to adopt the new regulatory framework in its further European efforts.
