In a significant development, Ripple has expanded its presence in regulated markets after obtaining regulatory approval from UK financial authorities to provide payment services.
Ripple gets FCA approval
Ripple scored a major regulatory victory in the UK on Friday by officially obtaining its registration approval from the Financial Conduct Authority (FCA) through its subsidiary Ripple Markets UK Ltd.
According to official FCA documents, the company has been granted an Electronic Money Institution (EMI) license under the National Money Laundering Regulations (MLR). Therefore, it will be able to carry out certain crypto-related activities in the United Kingdom.
EMI registration will allow Ripple to provide payment services and issue electronic money, according to the FCA website. However, it will remain subject to significant restrictions without the agreement of the financial authority.
Firstly, “Ripple Markets UK Ltd will not, without the prior written consent of the Authority, provide the following services: 1. The Company will not operate a machine that uses automated processes to exchange crypto-assets for money or money for crypto-assets. 2. Offer or begin services to retail customers,” the documents state.
Additionally, the company cannot appoint any agent or distributor and “will not issue electronic money or provide payment services to any consumer, micro-enterprise or charity.”
Ripple’s regulatory approval comes as part of authorities’ efforts to develop comprehensive financial services regulation that integrates crypto assets into the existing framework, thereby positioning the UK as a global crypto hub.
As reported by Bitcoinist, the UK Treasury is set to extend existing laws to cover crypto companies, transfer exchanges, wallet providers and other crypto service companies from the current anti-money laundering registration to the regulatory regime for banks and brokers.
FCA to launch new registration regime in September
Ahead of the implementation of the new rules, which are expected to come into force in October 2027, the FCA recently unveiled a timetable for crypto companies to comply with the new registration regime, which could affect Ripple’s recent victory.
On January 8, the financial regulator published a notice informing that it planned to open the application period for crypto companies seeking authorization in September 2026.
Notably, firms seeking to undertake any of the new activities regulated by crypto assets will need new approvals to undertake activities authorized by the FCA under the Financial Services and Markets Act 2000 (FSMA).
Therefore, crypto companies operating in the UK must obtain approval or an amendment to the existing authorization. The FCA stressed that “firms registered with us under the MLRs should note that there will be no automatic conversion and that they will need to obtain authorization from us under the FSMA before the new regime begins.”
Based on this, Ripple’s UK subsidiary will need to reapply in September to continue conducting regulated crypto activities under the new regime. Businesses that apply during the established window should receive a decision before the rules take effect. However, businesses that have not received approval by October 2027 will be allowed to continue operating until a decision is made.
Meanwhile, businesses that miss the application period or are not licensed before the new rules are adopted will benefit from a “transitional arrangement.” This will allow them to continue to fulfill existing contracts, but they will not be able to conduct new regulated crypto activities in the UK until they are authorized.
XRP trades at $2.09 in the one-week chart. Source: XRPUSDT on TradingView
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