Ripple has announced its plan to get a MiCA license to operate more effectively and to grow adoption of RLUSD across the European Union (EU). This license is required under the EU’s Markets in Crypto Assets (MiCA) regulation.
Ripple sees huge potential in Europe and wants to follow all the new rules. The company says it aims to be “MiCA-compliant,” meaning it wants to meet all the legal and regulatory requirements to do business in the EU.
To support this expansion, Ripple recently registered a new company, Ripple Payments Europe S.A, in Luxembourg in April. This move is important because Luxembourg is becoming a popular base for crypto companies looking to get MiCA-compliant.
Ripple has reportedly also applied for an electronic money institution (EMI) license there. While the company hasn’t officially confirmed this, applying for such a license is key to offering services across all 30 European Economic Area (EEA) countries.
Ripple also appears to be strengthening its stablecoin (RLUSD) business in Europe. Job openings in Luxembourg for roles like “Product Controller Payments and Stablecoin” and AML/compliance officers hint at serious plans to support stablecoin operations in the EU.
Ripple joins companies like Coinbase, Bitstamp, and Standard Chartered, who have already secured licenses or expanded their crypto services from Luxembourg.
In line with EU rules, issuers of stablecoins have to keep 30% to 60% of their reserves at banks, with severe caps on how much can be held at any one institution. Although France has an advantage with more EMI licenses because it has the major banks. Luxembourg has a more realistic configuration for reserve diversification.
Also Read: UK Leads Europe in Crypto Adoption at 19% Ownership: Ripple
