Ripple approved as Virtual Asset Service Provider by Central Bank of Ireland

Crypto-payments firm Ripple’s Irish subsidiary, Ripple Markets Ireland Limited, was granted approval by the Central Bank of Ireland on Dec. 19 to operate as a Virtual Asset Service Provider.

The registration allows Ripple to provide certain digital asset services within Ireland, paving the way for the firm to provide such services to clients across the European Economic Area once the Markets in Crypto Assets Regulation comes into force at the end of 2024, according to a statement.

Subject to acquiring further necessary approvals, Ripple general counsel Stuart Alderoty previously said it could “passport” its European license to the rest of the 27 states in the bloc.

“The Central Bank of Ireland’s addition of Ripple Markets to its list of registered Virtual Asset Service Providers is a significant step forward for our business in the region,” Ripple SVP, Strategic Initiatives, Eric van Miltenburg said.

“Ireland has positioned itself as a supportive jurisdiction for the virtual assets industry and consequently as a great place for businesses like Ripple’s to operate, reinforcing our decision to select Ireland as our primary base for EU regulation,” van Miltenburg added. “By providing regulatory clarity for the industry, Ireland — and the EU more broadly — are boosting confidence in the digital assets, payments and fintech ecosystem and demonstrating their commitment to the long-term development of these industries.” 

Ripple has been seeking a VASP license in Ireland since November 2022. The firm's latest registration follows its Singapore subsidiary, Ripple Markets APAC Pte Ltd, securing a Major Payments Institution license from the Monetary Authority of Singapore in October. In the United States, Ripple said it also secured the majority of its 35 money transmitter licenses this year.

Ireland emerging as a favored destination for crypto firms

Ireland's appeal as a destination for fintech innovation played a significant role in Ripple's decision to open its Dublin office in 2022, the firm said. The Central Bank of Ireland previously established an Innovation Hub in the country in 2018, facilitating more engaging and informal interaction between fintech firms and the regulator.

In October, crypto exchange Coinbase designated Ireland as its EU hub, having previously received approval as a VASP in the country in December 2022. Coinbase’s crypto exchange rival Gemini also expanded its operations to Ireland in October last year, becoming the first company to receive a VASP registration in the country.

The Central Bank of Ireland register now lists 11 firms, including Payward Ltd, the company behind crypto exchange Kraken, crypto payments service Moonpay and the Standard Chartered-backed digital asset exchange and brokerage platform Zodia Markets.

Ripple’s regulatory woes

In November, the Dubai Financial Services Authority also approved the Ripple-connected digital asset XRP for use within the Dubai International Financial Centre — enabling licensed virtual asset firms within the special economic zone to incorporate XRP into their services.

The SEC filed a lawsuit against Ripple in 2020, alleging that the sale of XRP tokens counted as unregistered securities. In July this year, Judge Analisa Torres ruled that XRP was not a security on the secondary market but would be a security when sold as part of an investment contract to institutional investors.

Torres considered Ripple's "programmatic" sales, which the firm used to sell XRP automatically on exchanges, as not constituting securities offerings as the buyers "did not invest in Ripple." Torres later denied the SEC's motion for an interlocutory appeal of the case in October, noting it would not "materially advance the ultimate termination of the litigation."