TL;DR
- Ripple obtained an EMI license in the United Kingdom through its local subsidiary, registered by the FCA under the Money Laundering Regulations to provide payment services.
- The authorization allows it to offer payment and electronic money services, but imposes limits: the subsidiary cannot serve retail clients or operate crypto ATMs without prior approval.
- The license falls within the FCA’s regulatory timeline, which will require full authorization under the FSMA by October 2027.
Ripple secured regulatory approval in the United Kingdom through its local subsidiary, which was registered by the Financial Conduct Authority (FCA) as an Electronic Money Institution (EMI) and brought under the framework of the Money Laundering Regulations (MLRs). This enables the company to provide payment services within the UK financial system under regulatory supervision.
The EMI license allows the provision of payment services and the issuance of electronic money, a key element for Ripple’s operating structure, which develops payment infrastructure and issues the RLUSD stablecoin. The authorization fits within the new regulatory calendar set by the FCA, which requires all firms registered under the MLRs to apply for full authorization under the Financial Services and Markets Act (FSMA) by October 2027.
Licensed, but with Broad Restrictions
The license does not grant full operational freedom. According to official FCA records, Ripple Markets UK operates under specific restrictions while it awaits further approvals. Without prior written consent from the regulator, the subsidiary cannot offer services related to crypto ATMs, launch products aimed at retail clients, or appoint agents or distributors within the United Kingdom.
In addition, the entity is prohibited from issuing electronic money or providing payment services to consumers, micro-enterprises, or charities. These limitations narrow the initial scope of the license and clearly define the market segments in which the subsidiary can operate at this stage.
Registration as an EMI and under the MLRs places Ripple Markets UK within the UK’s regulated perimeter. Beyond the license itself, the regulatory environment reflects a tightening and standardization of rules applicable to the crypto sector. The FCA is moving toward a broader, more structured licensing framework, in which transitional authorizations will be subject to additional reviews and requirements in the coming years.
Ripple Will Remain a Private Company
A few days ago, Ripple Labs president Monica Long confirmed that the company has no plans to pursue an initial public offering in the near term. She reiterated that Ripple will continue operating as a private company following a funding round that lifted its valuation to $40 billion.
Ripple did not issue additional public comments on the approval. The FCA authorization will be central to the company’s regulatory expansion through local subsidiaries, aimed at operating within clearly defined legal frameworks across multiple jurisdictions
