The US position on cryptocurrency and blockchain technology is outdated and way behind the supportive and progressive stances taken by most of its G20 peers, according to Ripple CEO Brad Garlinghouse.
Due to the uncertainty of cryptocurrency and blockchain support from the US government, Ripple announced earlier through its Chair Chris Larsen that Ripple will be forced to look for other friendlier locations abroad.
According to Garlinghouse, moving out of the US is a necessary and critical decision that will allow Ripple to develop further and stay competitive with both established and upcoming blockchain-based companies.
“The US is out of sync with other G20 markets-It’s critical for Ripple to have a level playing field in order to compete on a global scale. The UK, Singapore, Japan, Switzerland, and the UAE are at the top of our list because they’re providing clarity and consistency.”
Ripple Shortlisted Japan and Singapore as Top Destinations
Garlinghouse added that Ripple has shortlisted Japan and Singapore as its top destinations if the company moves from its Headquarters in San Francisco.
“The common denominator between all of them is that their governments have created clarity about how they would regulate different digital assets, different cryptocurrencies.”
The cryptocurrency exchange business in Japan has been under the regulation of the Payment Services Act which has been in effect since April 2017.
In April 2020, Japan adopted a new way of regulating the crypto Industry, through the Payments Services Act and the Financial Instruments and Exchange Act. The amendments cover an extensive scope involving the establishment and operation of crypto exchanges in Japan.
Ripple’s biggest subsidiary, SBI holdings is a Japanese Company that gives XRP a considerable reach into the Asian crypto remittance business.
Ripple’s Frustration is Justified
Ripple prides itself as the most active blockchain-based company that is highly involved in the advocacy of sufficient and clear crypto regulations in the US and worldwide.
However, the consistent and rigidity towards XRP and crypto startups in the US has sabotaged Ripple’s efforts, despite being the fourth-largest crypto by market cap and the most bank-integrated digital asset.
The news has elicited support from the XRP community with some saying that the relocation is strategic due to the presence of concise crypto regulatory frameworks.
“Regulations are clear and there is no time to waste, more competition will eventually come out regulatory in place, living #Ripple striving and waiting for regulations in the US. Act now.”