Key points to remember
- The UK Treasury (aka Her Majesty’s Treasury) has released a new report on cryptocurrency regulation.
- The report states that there are three broad categories of digital tokens: e-money tokens, security tokens, and unregulated tokens.
- XRP has been listed under unregulated tokens, along with Bitcoin and Ethereum, which implies that it is not a security.
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The UK Treasury, also known as Her Majesty’s Treasury, listed XRP as an unsecured asset in a recently released document.
XRP is not a security in UK
In one report, the UK Treasury described in detail the current regulatory landscape surrounding crypto assets in the UK.
According to the report, there are three broad categories of digital tokens: e-money tokens, security tokens, and unregulated tokens. In the report, XRP along with Ether (ETH) and Bitcoin (BTC) were classified as exchange tokens, a subcategory of unregulated tokens.
According to the Treasury, these tokens are “neither electronic money tokens nor security tokens,” and they do not have features that resemble security assets or other similar investments.
The British Treasury is responsible for the formation and execution of the country’s financial and economic policy. It previously ranked cryptocurrencies based on the framework designed by the UK’s Financial Conduct Authority (FCA) in 2019.
XRP lawsuit continues
The classification clearly shows that the UK does not view XRP as a security asset, contrary to the charges against Ripple by the US Securities and Exchange Commission.
In December 2020, the U.S. regulator filed a lawsuit against Ripple, which alleges its ongoing XRP token sales constitute an unregistered securities offering worth $ 1.38 billion.
Meanwhile, Ripple CEO Brad Garlinghouse insists XRP is not security, even by US standards. He said CNBC in December that the US Treasury does not consider XRP a security, pointing to a FinCEN 2015 document which called XRP a virtual currency.
It remains to be seen how these and other facts will affect the SEC’s ongoing lawsuit against Ripple.
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