Blockchain firm Ripple considering Japan, Singapore if it leaves US

TOKYO (BLOOMBERG) - Ripple Labs has shortlisted Japan and Singapore as countries the blockchain payment services company could move to if it leaves the US due to a lack of regulatory clarity, its top executive said.

Switzerland, the UK and the United Arab Emirates are also potential destinations, chief executive officer Brad Garlinghouse said in an interview. "The common denominator between all of them is that their governments have created a clarity about how they would regulate different digital assets, different cryptocurrencies," he said.

Speaking in a separate interview with Bloomberg Television, Mr Garlinghouse said US authorities are unclear on the status of cryptocurrencies, with different opinions over whether they are a commodity, a currency, a property or a security.

"Regulation shouldn't be a guessing game," he said. "Ripple is definitely a proud US company and we'd like to stay in the US if that was possible, but we also need regulatory clarity in order for us to invest and grow the business."

Japan has been a "contrast" to the US, creating an "environment for a very healthy market to develop," he said. The country introduced a registration system for cryptocurrency exchange operators in 2017 - a move widely seen as an official acknowledgment of digital coins as a financial asset.

Mr Garlinghouse highlighted Ripple's ties with Japanese financial conglomerate SBI Holdings, including their Tokyo-based joint venture offering global payment services driven by blockchain technology. SBI CEO Yoshitaka Kitao, known for his push to create a hub for international financial business in western Japan, joined Ripple's board last year.

"Japan is one of our fastest-growing markets, in part because we have key partners like SBI," Mr Garlinghouse said. "I have spoken to the SBI team about the fact we are looking at" the country as a potential destination, he said.

Mr Garlinghouse said the coronavirus pandemic has given a "tailwind" to cryptocurrency markets because central banks have been printing fiat currency, which is "inflationary on some level." A move away from cash is also helping, he said.

San Francisco-based Ripple offers payments and settlement services through the virtual currency known as XRP and other platforms.

Cryptocurrencies rallied on Wednesday (Oct 21) after PayPal Holdings said it will allow customers to use them to shop on its worldwide network. The initial selection includes Bitcoin, Ethereum, Bitcoin Cash and Litecoin, according to a statement.