Ripple Warns: This Country Is Falling Behind In The Crypto Race

Ripple, the blockchain-based payments firm behind XRP XRP/USD, is raising fresh concerns over the UK's sluggish approach to crypto regulation, arguing that it's leaving British banks unwilling to engage with digital assets.

What Happened: At a policy summit held in London, Cassie Craddock, Ripple's Managing Director for the UK and Europe, said that the country's banking institutions remain hesitant to adopt Ripple's services due to lingering uncertainty around crypto laws.

"It's still difficult to access basic banking services because of this uncertainty," she said, adding that large banks continue to keep their distance.

Craddock recalled being dismissed by major banks during earlier attempts to introduce Ripple's solutions. "Back in 2017, financial institutions would hear us out and then never return our calls," she said.

Although conditions have since improved in the EU, where banks are increasingly embracing digital asset services under the new Markets in Crypto-Assets (MiCA) regulation, the UK has made less progress.

While the new Labour government under Prime Minister Keir Starmer has restarted work on a regulatory framework, Ripple says the pace remains too slow.

"We need clarity sooner rather than later if we want to benefit from the pro-crypto stance we're seeing in the U.S.," Craddock told DL News, referencing recent policy shifts under President Trump's administration.

Ripple says its expansion in Europe has accelerated thanks to clearer regulation across the bloc.

According to Craddock, banks on the continent are now facing client demand for digital asset services—leading them to seek out platforms like Ripple.

In contrast, UK institutions are holding back due to a lack of confidence in the regulatory environment.

"They don't feel secure enough to get involved," she said.

While large banks hesitate, Ripple is finding more interest among smaller fintechs and startups in the UK looking to leverage its cross-border payment tools.

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Why It Matters: The firm is increasingly shifting its hiring strategy to focus on the United States.

CEO Brad Garlinghouse has previously stated that 75% of new roles will be U.S.-based to align with the friendlier policy environment there.

Despite this, Ripple says it continues to invest in its UK and European operations.

The company is also one of several awaiting regulatory approval from the UK's Financial Conduct Authority (FCA).

Since 2020, the FCA has only approved 14% of the 351 crypto firms that have applied for registration, a rate that has drawn criticism from the industry.

In response, the FCA maintains that its low approval rate reflects strict adherence to anti-money laundering standards, rather than resistance to innovation.

"We're not anti-innovation," FCA Chief Executive Nikhil Rathi said last week. "We want the UK to be an attractive destination."

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