While regulatory uncertainty permeates the crypto industry currently due to the United States suddenly taking an aggressive and negative stance against the digital asset class, in the UK, Ripple (XRP) has gained sudden clarity alongside Bitcoin and Ethereum.
According to new classifications revealed by the Financial Conduct Authority, Ripple joins the other two most dominant crypto assets on the market, in being classified as an exchange or utility token instead of the more damning security token classification.
XRP Classified As Exchange or Utility Token By Financial Conduct Authority
Ripple’s Global Head of Government Relations Michelle Bond recently revealed news that the UK’s financial market conduct regulator the Financial Conduct Authority, has classified Ripple as an exchange or utility token in its latest report, removing the possibility of being labeled a security token. Being labeled a security token could come with additional scrutiny.
The report compares Ripple to Ethereum most closely, saying that “XRP has similar features,” such as being used as a “means of ‘payment’ (exchange token)” or to “run applications (utility token).” Bitcoin is an example of another crypto asset that the FCA classifies as an exchange or utility token, providing investors with regulatory clarity.
The Financial Conduct Authority is a financial market regulator first established in 2013 that operates independently from the UK government and is instead funded by the fees generated from the some 58,000 financial firms it regulates. The regulatory entity’s purview covers creating the guidelines that financial markets and firms operate under, overseeing the consumer credit industry, and the firm has the been granted the power to freeze assets of any financial market participants it investigates, even before they are found guilty.
Ripple Is the Crypto Asset For Banks and Financial Regulators
While Bitcoin and Ethereum are decentralized crypto assets that were created on the idea that government control is bad for financial markets, and that people should be in charge of their own assets.
XRP, on the other hand, was created by Ripple, a financial firm seeking to disrupt the cross-border settlement market. XRP is the native crypto token for the Ripple protocol. And while it’s being classified under the FCA as being an exchange or utility token similar to Bitcoin and Ethereum, the crypto community see Ripple’s control over XRP similar to the control current financial market organizations have over money and assets, making it a poor choice given the original cryptocurrency ethos.
But it’s because Ripple does have a corporation behind it, and a Global Head of Government Relations to help ensure they comply with important financial market regulators like the FCA. In the United States, Ripple’s close ties to the banking industry here in the have helped it stay in favor over other crypto assets like Bitcoin and Ethereum in terms of getting the world of traditional finance to welcome crypto with open arms.
CoinsPH sees the boom in XRP ODL transactions as records are created
Recently, H_M_X, a cryptocurrency enthusiast spotted that the largest ODL transaction conducted on CoinsPh, was clocked at 250,000 XRP.
Ripple and its native cryptocurrency XRP have been doing positive rounds in the cryptocurrency space for some time now despite the bearish price crashes. One of XRP’s primary specialties has been its ability to reflect growth in its other parameters across new regions. A couple of weeks ago, it was reported that XRP’s market volume on exchanges like Bitso was on record-breaking uptrends, a phenomenon which was later overshadowed by the arrival of the bear.
Recently, H_M_X, a cryptocurrency enthusiast spotted that the largest ODL transaction conducted on CoinsPh, was clocked at 250,000 XRP. This high value was achieved at a rate faster than it took on Bitso. The latest destination tag record on Bitso was 25,370,527, while the highest total amount of transactions was 485,127 XRP.
Looking at the same metrics for Coins Ph, the destination tag was recorded at 255,406, while the most significant transaction was the most recent one of 250,000. Several members of the community praised Ripple’s initiatives to grow the On-Demand Liquidity market recently with ‘blcurley’ tweeting:
“Ripple used to have large lag times from a customer acquisition to the software implementation. Through time & experience, they have streamlined these processes to get customers up & running in a short amount of time. I’m expecting the same with #ODL and new corridors.”
Despite the developments in the space, XRP has not seen much of a rise on the price front as the cryptocurrency was holding at one of its lowest measures across an extended time period. At press time, Ripple’s XRP was exchanging hands for $0.22 with a total market cap of $9.657 billion.
The third-largest digital asset on the charts held a 24-hour market volume of $1.416 billion. During the research, it was also noticed that the number of total interchange XRP payment transactions had risen towards earlier crests. The ODL destination tag had surpassed the 158068 after a long time, giving the XRP army hope that the asset would begin an ascend soon.
November was also an exciting month for XRP and its technologies, such as xRapid. ON November 7, the total XRP ODL saw a rise from its earlier average of $1 million to almost $2.2 million. This transaction occurred between Bitstamp, which counts as the US corridor for xRapid transactions and Bitso, which counts as the corresponding Mexican corridor.
David Schwartz Spoke About Ripple’s Main Objectives
Speaking at UBRI Connect 2019, David Schwartz, Ripple CTO in his keynote underlined the fact that millions of people worldwide have very limited access to efficient, inexpensive financial services.
“We tend to think we’re overbanked in the United States because you could just go anywhere and open a bank account. But, a fairly shocking statistic, 24 million Americans are underbanked, alongside almost 2 billion people worldwide.”
Schwartz stated that funds today are spread across different financial networks which very often are not compatible with one another and this is one of the critical problems people currently encounter when dealing with the present financial system.
“Today, money is locked up in distinct systems, just like information used to be. If I want to pay you some money, I have to ask you what system you’re on. Many payment networks shut down outside of business hours. Many payment networks only work in overlapping business hours between the two time zones they make payments between”.
Schwartz stated that Ripple’s broader mission is to help financial institutions worldwide to move money as quickly and efficiently as possible. In our day and age, he argued that is not acceptable that people have to wait for days to get confirmation that their payment went through. By acting as a bridge currency in overseas payments XRP, according to Schwartz, could potentially vastly improve the speed and efficiency of transactions.
“On the enterprise side, we built this payment network called RippleNet using XRP to settle where that makes sense. The problem that solves is having to preposition money where you need to make payments. So, for example, without some sort of a cryptocurrency solution, to make a payment to the Philippines you’d have to have Philippine pesos sitting in the Philippines.
What RippleNet does with XRP, is the sender can exchange their sending currency, say US dollars for XRP, send the XRP on the XRP Ledger and buy the Philippine pesos precisely when they need them.”
Finally, Schwartz said that Ripple’s main goal is to create an Internet of Value, where money moves the same way and at the same speed information does.
Ripple Forecast and Analysis December 9 — 13, 2019
Ripple XRP/USD end the trading week at the level of 0.2199 and continue to move as part of the correction and the bearish channel. Moving averages indicate the presence of a bearish trend, continue to be repelled by signal lines, which indicates pressure from the bears. At the moment, we should expect an attempt to continue the decline and test the support area near 0.1635. Where again we should expect a rebound and continued growth of the cryptocurrency in the region above the level of 0.3725.
Ripple Forecast and Analysis December 9 — 13, 2019
In favor of the growth of XRP/USD quotes in the current trading week December 9 — 13, 2019 a test of the support area on the relative strength index (RSI) will come out. The second signal will be the completion of the formation of the bull model «Wolfe Wave». Cancellation of the Ripple cryptocurrency growth option will be a fall and a breakdown of the 0.1305 area. This will indicate a breakdown of the support area and a continued fall in XRP/USD quotes with a target below the level of 0.1005. A confirmation of the growth of the cryptocurrency will be a breakdown of the resistance area and closing of quotations above the 0.2625 area.
Ripple Forecast and Analysis December 9 — 13, 2019 implies an attempt to test the support level near the area of 0.1635. Where can we expect continued growth of quotations with a potential target at the level of 0.3725. An additional signal in favor of the fall of Ripple will be a test of the trend line on the relative strength index (RSI). The cancellation of the option to reduce cryptocurrency will be the breakdown of the 0.1305 area. This will indicate a continued decline with a target below the level of 0.1005.