Ripple is contemplating a move from the USA to Singapore. Company executive Chris Larsen has warned that what he views as excessive regulations in the US are an impediment to the company's development. He thinks that the US Securities and Exchange Commission (SEC) has taken harsh attitude toward cryptocurrencies and blockchain development. The remarks were delivered to a Forbes reporter at the LA Blockchain Summit. Ripple is struggling with the SEC over the legal status of the XRP token in the USA. The SEC refuses to rule on whether the XRP token is legally considered a security or not.
Why should I care? Ripple was founded in the USA, but has been embroiled in legal issues over the legal definition of its XRP token, which is one of the most valuable tokens as measured by market cap. The SEC has refused to rule on the status of XRP, which sends a negative message to companies like Ripple Labs, which are working on next-generation payment platforms. Unlike the USA, Singapore has created a solid regulatory framework for crypto and blockchain development, and also offers blockchain companies attractive tax laws and a highly educated workforce. If major nations like the USA refuse to accommodate blockchain development, they are likely to lose out in the long run as talented people go to nations that create sane regulations for crypto and blockchain.
Reddit user FellatioFellas commented the news:
Good idea. Singapore is well ahead of other jurisdictions in actively preparing solid legislation and regulatory framework that not only governs the finance of fin tech, but also makes room for them to be innovative and add value. Taiwan is a close second, and maybe perhaps Hong Kong, but who wants to live with a bunch of dirty commies?