Brad Garlinghouse, CEO of Ripple, said the company’s Asia-Pacific business has not been affected by current regulatory issues in the US.
Ripple’s Activities Unaffected in Asia Region
Although there is currently a $1.3 billion lawsuit with the U.S. Securities and Exchange Commission, Ripple still appears to be as usual. In an interview with Reuters on Friday, Garlinghouse noted that the company’s Asia-Pacific business did not have a negative impact on the current SEC lawsuit: “It (the lawsuit) has hindered activity in the United States, but it has not really impacted what’s going on for us in Asia Pacific.”
According to SEC, XRP token sales violated the securities law since 2013 and the US Securities and Exchange Commission (SEC) had brought charges against Ripple and its key executives in December 2020.
Garlinghouse attributed the company’s good reputation with regulatory authorities in the region to no impact. He said: “We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets.”
In fact, Japan and other countries in the Asia-Pacific region have historically benefited from Ripple and XRP token. Ripple is even part of a joint venture with the Japanese conglomerate SBI Holdings to create SBI Ripple. The joint venture is at the center of many projects to set up Ripple-based payment channels in Asia.
In March 2020, the blockchain payments company partnered with Thai financial technology company DeeMoney, which continued to expand into Southeast Asia.
Ripple CEO Downplays SEC lawsuit effect
Garlinghouse also downplayed the effects of delisting US exchanges or holding XRP token transactions. Ripple’s CEO stated that there are more than 200 platforms worldwide that list XRP trading pairs.In addition to US crypto exchanges, asset management companies and cryptocurrency funds such as Bitwise and Grayscale have liquidated their XRP holdings.
Back in December last year, the head of Ripple announced that only 5% of the company’s customers live in the United States. Garlinghouse has even previously stated that the company will consider taking action outside of the US if the regulatory environment cannot be improved.
At the same time, Garlinghouse and Ripple’s executive chairman, Chris Larsen had filed separate motions to dismiss the case. Attorneys for executives from the two companies said the US Treasury Department’s Financial Crime Enforcement Network had previously classified XRP as a virtual currency.
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