Ripple Gets Preliminary EU Crypto License but Must Follow MiCA Stablecoin Limits

Ripple received a preliminary green light for a Crypto Asset Service Provider license from Luxembourg's Commission de Surveillance du Secteur Financier under the EU’s Markets in Crypto Assets regulation. The San Francisco-based company said Tuesday that the license would enable it to offer its stablecoin payment systems to European companies and expand into broader crypto functions.

MiCA, which was voted into law in 2023, permits firms approved in one EU state to provide cryptocurrency services across the entire bloc.

The European Commission opened a consultation last month to review whether MiCA remains fit for purpose. Stablecoin rules under the framework include a ban on offering interest and require issuers to hold as much as 60 percent of backing assets in cash deposits at commercial banks.