Ripple may be in trouble with US authorities – but business in Asia is surprisingly good
Ripple, the blockchain-based payments company, is in trouble with US authorities. However, it says its Asian business is not affected.
Ripple is successful
Payments firm Ripple claims it has not experienced any adverse circumstances in the Asia-Pacific region despite being pursued by the US Securities and Exchange Commission.
Ripple was charged by the SEC last year in connection with alleged securities fraud related to the sale of XRP tokens. Its founders, Chris Larsen and Brad Garlinghouse, were also named in the indictment for allegedly selling over $700 million of the tokens for personal gain.
The December 2020 lawsuit further alleges that Ripple indulged in token manipulation, selling unlicensed securities, paying according to Bitcoin Up for listings on crypto exchanges and paying for „bogus“ partnerships with several of its „partner“ companies.
But despite all the allegations, Ripple (To buy Ripple with Paypal guide) maintains that its business in Asia is largely unaffected.
„It (the lawsuit) has hampered operations in the United States, but it doesn’t really impact what’s going on for us in the Asia-Pacific region,“ CEO Garlinghouse said. He cited „regulatory clarity“ as the main reason for continued activity in Asia and Japan.
Garlinghouse adds that he is not aware of any crypto exchange outside the United States that has stopped XRP trading. „XRP is traded on over 200 exchanges around the world. It’s really only three or four exchanges in the United States that have stopped trading,“ he said.
„We see XRP liquidity activity growing outside the United States and in Asia, certainly in Japan further.“
US an „obstacle“
The Ripple co-founder had previously said that US regulators were cracking down on the crypto market and losing ground to countries in the Far East – which have decidedly fast blockchain and crypto policies and are attracting both funds and talent to the region.
Garlinghouse echoed these thoughts on Thursday, saying that US regulations are a „barrier“ to innovation. He added that Ripple (Go to Buy Ripple Guide) has signed more than 15 new agreements with banks around the world since the SEC filed its lawsuit.
The US case remains on track for a hearing in August 2021. Garlinghouse has been largely silent on the issue, but claimed in January that the SEC’s „unsubstantiated allegations“ were not representative of the Ripple business or the way XRP tokens are handled.