The UK government has referred to Ripple’s XRP as an exchange token and not a security. This was mentioned in a recently released report titled “UK regulatory approach to cryptoassets and stablecoins: Consultation and call for evidence.”
As stated in the report, XRP, Ether (ETH), and Bitcoin (BTC) are digital assets that are primarily used as means of exchange. As a result, the crypto assets are neither e-money nor security tokens.
In addition, the Treasury said:
“Security tokens have characteristics akin to specified investments, like a share or a debt instrument, as set out in UK legislation. Broadly, these are likely to be tokenized, digital forms of traditional securities.”
Notably, Ripple has been in a legal battle with the US Securities and Exchange Commission over the classification of its native token.
The UK government’s report also mentioned the high volatility of crypto assets. According to the report, crypto volatility makes digital assets less suitable for payments. Regardless, investors are showing interest in crypto as a high-risk speculative investment.
XRP has been recording losses amid the ongoing legal battle with the US SEC, which has led to its delisting on several exchanges. Some exchanges that have delisted XRP include Coinbase, Bitstamp, and OKCoin. At press time, XRP is up 5.79% to $0.2955.
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