Ripple secures UK electronic money licence through FCA approval

On January 9, Ripple, a cross-border payments network, secured an  Electronic Money Institution (EMI) authorization in the UK through its subsidiary, Ripple Markets UK Ltd. 

Ripple applied for the license back in July 2023 with the UK Financial Conduct Authority (FCA). The registration occurred after Ripple prevailed against the U.S. Securities and Exchange Commission regarding the classification of its XRP coin as a security.

Ripple’s licence approval expands the reach of UK-regulated payments

The UK regulatory approval enables Ripple to comply with the UK’s anti-terrorist financing and money laundering regulations. According to the FCA report, the company is expected to focus on expanding its regulated payments infrastructure in the UK, using EMI authorization as a basis to strengthen its ties with banks, payment providers, and institutional clients.

The UK financial regulator revealed that Ripple is prohibited from running cryptocurrency ATMs and serving retail customers without first obtaining FCA approval. The cross-border payments company is also prohibited from designating agents or distributors, or issuing electronic currency to individuals, small businesses, or charitable organizations.

The FCA regulatory approval marks an important step for Ripple as it increases its presence in regulated markets. 

XRP, the cryptocurrency linked to Ripple’s payment and settlement systems, slightly increased in value following the announcement. At the time of publication, the digital asset was trading at approximately $2.0964, representing a gain of more than 10% over the previous seven days.

UK crypto regulatory regime advances under FCA framework

Ripples’ Electronic Money Institution (EMI) authorization coincides with the UK’s efforts to incorporate digital assets into its financial system. 

In December last year, the Financial Conduct Authority (FCA) launched its consultation that will ultimately define how crypto firms operate in Britain.

FCA consulted on topics such as listing regulations for cryptocurrency tokens, exchange standards, market abuse, restrictions for brokers, and other intermediaries. The regulator also consulted on lending and borrowing, decentralized finance (DeFi), and staking. The UK financial regulator requested input on prospective cryptocurrency regulation under the new regulatory framework.

In an announcement, the UK regulator stated that it plans to build a regulatory system for the cryptocurrency industry by 2027. The deadline for responding to the FCA’s consultation is 12 February 2026.

In October 2023, the Treasury released a comprehensive proposal for establishing a financial services regulatory framework for cryptoassets. The proposal called for the creation of new regulated activities for cryptoassets, requiring crypto companies that want to offer related services in the UK to obtain FCA authorization.

In 2025, the Government presented the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 (FSMA) to Parliament, which would bring cryptoassets within the FCA’s regulatory purview.

Earlier today, Cryptopolitan reported that the FCA launched a crypto licence portal for crypto companies to apply ahead of the regulatory regime that is scheduled to take effect next year. 

According to the FCA report, businesses registered under the MLRs are subject to the FSMA authorization requirement. The report noted that the FSMA also applies to businesses approved by the Payment Services Regulations of 2017 or the Electronic Money Regulations of 2011.

The UK financial regulator has disclosed that, before the new system comes into effect, companies that have already been approved under the FSMA to participate in extra-regulated activities must amend their existing permits.

According to instructions from the FCA, crypto companies must request a pre-application meeting with the Financial Regulator’s Pre-Application Support Service (PASS).

The UK regulator announced that the application period must conclude at least 28 days prior to the new regulation taking effect. The application period is anticipated to begin in September 2026.

The FCA will offer a savings facility during the application stage through a Treasury draft Statutory Instrument, allowing the business to keep providing cryptoasset services until its application is finally decided.

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