UK Treasury Says XRP Is Exchange Token and Not a Security

UK Treasury Says XRP Is Exchange Token and Not a Security


The United Kingdom government appears to be cementing its position that XRP is an exchange token and not a security.

Her Majesty’s Treasury has published a new document outlining the UK’s regulatory approach to cryptocurrencies and stablecoins.

The report classifies XRP, Ethereum and Bitcoin as “tokens that are primarily used as a means of exchange.” So-called “exchange tokens” fall under an “unregulated” category that means they are neither e-money nor security tokens.

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The HM Treasury report was referencing a framework that the UK Financial Conduct Authority (FCA) laid out in 2019.

Explains the Treasury,

“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 tokenised, digital forms of traditional securities.”

The classification matters to Ripple, because the San Francisco-based payments company is fighting a lawsuit from the U.S. Securities and Exchange Commission that alleges XRP was an unregistered security upon its

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