Ripple CEO: Asian business operations not harmed by SEC complaint
Brad Garlinghouse insists that Ripple’s Asia-Pacific region has not yet experienced any negative impact from the allegations brought in the US. Although major Crypto Nation Pro payment service provider Ripple is in the midst of a US$1.3 billion legal battle with the US regulator SEC, the company’s day-to-day business operations are continuing as usual.
Accordingly, chief executive Brad Garlinghouse told Reuters on Friday that Ripple’s Asia-Pacific (APAC) economic region has so far not experienced any negative consequences because of the SEC lawsuit in the US:
„While the lawsuit is hampering our business in the US, it has no real impact on what we do in Asia Pacific.“
In December 2020, the US Securities and Exchange Commission (SEC) had filed charges against Ripple and its management, alleging that the issuance of the company’s cryptocurrency XRP constituted an unlawful sale of securities. Garlinghouse first commented in detail on the allegations in early January.
He now attributes the lack of headwind in APAC to his company’s good standing with the region’s regulators. To that effect, he explains, „We’ve already been able to push our business further in Asia and Japan because there’s more regulatory clarity in those markets.“
A side swipe at the American authorities, as the Ripple CEO sees the unclear legal situation in the US as the main reason for the legal dispute there. In Japan and other countries in the Asia-Pacific region, however, the crypto payment service provider has been viewed favourably for some time. For instance, Ripple has even entered into a joint venture with Japanese financial conglomerate SBI Holdings to create SBI Ripple, which is involved in several projects in Asia and aims to establish a Ripple-based crypto payment corridor in the region.
In March 2020, the blockchain company again expanded further into Southeast Asia by initiating a partnership with Thai payment service DeeMoney.
Speaking to Reuters, Garlinghouse also downplays the fact that a number of US crypto exchanges have delisted the company’s cryptocurrency XRP.
The Ripple CEO retorts that more than 200 crypto trading platforms around the world still carry XRP
However, it is not just US-based crypto exchanges that have jumped ship, but also major crypto investment funds such as Bitwise and Grayscale.
Garlinghouse had already emphasised in December that the US market is not Ripple’s only mainstay. At the time, he pointed out that only 5% of the payment service’s customers come from the United States. For this reason, the CEO had also hinted in the past that a relocation to Asia would be conceivable if the legal situation in the US did not improve.
CEO Garlinghouse and Chairman Chris Larsen have each filed their own opposition to the SEC’s indictment after it was subsequently supplemented by allegations against the two directors. Both are alleged to have enriched themselves by selling off XRP at the expense of investors. The lawyers of the defendants now refer to the fact that the Financial Crimes Enforcement and Enforcement Commission (FinCEN), which is subordinate to the US Department of the Treasury, had already classified XRP as currency before.