Cryptocurrency

According to the CEO, Ripple’s expansion in Asia is unaffected by the SEC lawsuit

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Despite being in the middle of a $ 1.3 billion legal battle with the U.S. Securities and Exchange Commission, it still seems like it’s normal for Ripple.

In a conversation with Reuters on Friday, Garlinghouse announced that the company has not suffered a negative setback as part of the current SEC lawsuit in the APAC business theater:

“It (the lawsuit) hindered activity in the United States, but it didn’t really affect what’s going on for us in the Asia-Pacific region.”

In December 2020, the SEC accused Ripple and its key executives of violating securities laws in the sale of XRP tokens since 2013.

Attributing the lack of any impact to the company’s good reputation with regulators in the region, Garlinghouse said, “We were able to expand business in Asia and Japan as we had regulatory clarity in these markets.”

In fact, Japan and other APAC countries have historically been cheap to Ripple and XRP. Ripple is even part of a joint venture with the Japanese conglomerate SBI Holdings to form SBI Ripple. The JV company is at the heart of numerous projects to create a Ripple-based payment corridor in Asia.

In March 2020, the blockchain payments company expanded further into Southeast Asia and partnered with DeeMoney, a Thai fintech company.

Garlinghouse also downplayed the impact of U.S. exchanges delisting or stopping trading in XRP tokens. According to Ripple’s CEO, over 200 platforms around the world list XRP trading pairs.

In addition to US crypto exchanges, asset managers and cryptocurrency funds like Bitwise and Grayscale have also liquidated their XRP holdings.

As early as December, the Ripple boss announced that only 5% of the company’s customers were based in the United States. Garlinghouse has even previously stated that the company is considering moving outside of the U.S. if the regulatory environment doesn’t improve.

Meanwhile, both Garlinghouse and Ripple’s CEO Chris Larsen have filed separate motions to dismiss the case. Attorneys for both company executives say the Treasury Department’s Financial Crimes Enforcement Network previously classified XRP as a virtual currency.

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Melinda Martin