• Ripple may relocate from the US to a country with a more friendly cryptocurrency regulation.
  • XRP/USD reversed from the support area, ready to extend the downside correction.

The California-based fintech startup Ripple seems to be exhausted by the US authorities' strict regulatory requirements. 

In the recent speech during LA Blockchain Summit on October 6, Ripple's co-founder Chris Larsen hinted that the company might move from the United States to a jurisdiction with a more favorable regulatory environment. He mentioned the UK, Switzerland, Singapore, or Japan as a possible new destination for the company.

Larsen emphasized that Ripple was frustrated with the unfriendly attitude and the lack of regulatory clarity for blockchain and cryptocurrency-related business in the United States. The harsh restrictions and constant punitive measures towards the cryptocurrency projects push the US behind the rest of the world regarding the inevitable digital innovations in the financial area. 

The message is blockchain, and digital currencies are not welcome in the US […] You want to be in this business, you probably should be going somewhere else. To be honest with you, we're even looking at relocating our headquarters to a much more friendly jurisdiction.

At this stage, the company considers moving its headquarters from the US. However, at some point, the company may leave the country entirely, meaning that it won't offer services t the US-based citizens and companies.  

The head of the company Brad Garlinghouse added that the company doesn't want to avoid regulations; it wants clarity. 

Ripple's spat with the US regulators

Meanwhile, Ripple's disappointment with the US's regulatory approach is understandable considering the ongoing litigations related to XRP token sale. 

In 2018 Ripple's investor Vladi Zakinov filed a lawsuit against the company alleging the XRP token is a security under California law. In February 2020, the federal court denied a motion by Ripple to dismiss a lawsuit. Investors disappointed by XRP's price momentum, insist that the company actually sold unregistered securities. Now they want their money back.  

Ripple is not the only one

The fintech startup behind XRP is not the only victim of the US regulatory wheels. Recently, the FXStreet reported that the Securities and Exchange Commission (SEC) won a landmark securities lawsuit against Kik Iinteractive Inc. The SEC alleged that the team raised $100 million in 2017 via illegal securities sale.

SALT Blockchain will also have to return funds to the investors its ICO and pay the penalty in the amount of $250,000. These are the most recent SEC's cases against blockchain projects that carried out ICOs in 2017 and 2018.  

The Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) came after the largest cryptocurrency derivatives platform BitMex and its top management. They are accused of violating Bank Secrecy Law and failing to prevent money laundering. Notably, the company is registered outside the US, by the regulators claim that it has been offering the US citizens illicit derivative instruments, and thus has to be punished.

 Read our comprehensive report on what happened with BitMex and what it means for the industry.

Ripple's XRP takes a hit   

XRP is the fourth largest digital asset with the current market value of $11 billion and an average daily trading volume of $2.6 billion. At the time of writing, XRP/USD is changing hands at $0.245, down nearly 4% on a day-to-day basis. The asset's price is moving in sync with the market. 

XRP/USD: The technical picture

From the technical point of view, XRP/USD has reversed from the resistance line on the approach to $0.26, limiting the price recovery since the beginning of September. 

A failure to clear the barrier implies that XRP may continue the sell-off with the initial target created by $0.227. This barrier served as resistance back in May and has been verified as support on numerous occasions in September.  Currently, it is also reinforced by the upside trendline from March 16 low.  Once it is out of the way, the downside momentum is likely to gain traction with the next focus on the psychological barrier of $0.2

XRP/USD daily chart

If the support holds, XRP/USD will recover to retest the above-mentioned resistance of $0.26.  A sustainable move above this area is needed for the upside to gain traction with the initial target at the previous recovery high of $0.3. Once it is cleared, the price will move towards the double top of August 2 and August 17 at $0.328.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three reasons why DOGE price will not be back above $0.17 anytime soon

Three reasons why DOGE price will not be back above $0.17 anytime soon

Dogecoin price is at the cusp of saying goodbye to $0.10 as the price is set to drop another leg lower in the coming week after DOGE price consolidated below that same $0.10. With such a move, losses would sum up to 55% of depreciation.

More Dogecoin news

Cardano price could go either way next week, but downtrend still rules

Cardano price could go either way next week, but downtrend still rules

Cardano price closes the week with another loss on the books. ADA price looks set to instead chose more downside as investors are turning away from cryptocurrencies. Expect another drop with at least a retest at $0.415.

More Cardano news

Why another 60% drop in SHIB price is inevitable

Why another 60% drop in SHIB price is inevitable

Shiba Inu price is too far gone from the significant pivotal level of $0.00001708 to make a strong comeback for now. Expect to see price action consolidate around current levels, slightly above $0.00001000, before another round of tail risks will come back to bite price action.

More Shiba Inu news

A weekly close below $0.50 spells another correction ahead for XRP price

A weekly close below $0.50 spells another correction ahead for XRP price

Ripple (XRP) price came close to a full recovery after the positive shift in sentiment on Friday, but as long as price action remains below $0.50, there is still no evidence of a fundamental turnaround in sentiment. Expect to see further downward pressure as several bearish pressures are not easing.

More Ripple news

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP