US regulations could cause Ripple to relocate

US regulations could cause Ripple to relocate

By Sam Grant - min read
An image of a metallic symbol of Ripple

Ripple executive has warned that US regulations could force the company start exploring a new base that has a more favourable regulatory environment

The company’s executive chairman Chris Larsen deplored the position of regulations in the country, especially toward crypto firms. Speaking at the LA Blockchain Summit, Larsen revealed that Ripple might be inclined to start looking at a move away from the US to Europe and Asia.

Larsen lamented that the US had not created a regulatory environment for crypto companies to flourish in or even compete globally. In regards to the unfriendly regulatory environment, the executive asserted, “To be honest with you, we’re even looking at relocating our headquarters to a much more friendly jurisdiction”.

Some of the countries the San Francisco-based company hinted at are Switzerland, Japan, Singapore and the UK.

He went on to add that in the friendlier landscapes, “you have the advantage of happening the capital markets, the regulators, and the innovators all in the same city”. There is a lack of understanding between involved parties in the US as they aren’t located in the same city, i.e. techpreneurs in Silicon Valley, investors in New York and lawmakers based in Washington.

Larsen expressed his frustrations on the regulatory jurisdiction regarding crypto saying, “The whole tenor continues to be one of frustration that we don’t have more clarity and we don’t have more of a pro-US approach”.

He also poured scorn on lawmakers for contributing to the country losing the blockchain arms race to China. According to Larsen, the US had failed to develop “the next generation of the global financial system”, and for this reason, the country is “woefully behind” in the “tech cold war with China”.

Ripple Labs, the creator of XRP, has also had issues with aggrieved investors claiming that the crypto coin dodged some laws.