Ripple’s success in the Asia-Pacific region contrasts with the stiff regulatory opposition it faces in its homeland.
Ripple announced that SBI Ripple Asia – a joint venture between SBI Holdings and Ripple – has added Global Money Express Co. Ltd (GME Remittance) to its existing South Korean client list, which includes CROSS ENF and Sentbe.
GME, one of the largest bank-independent remittance service providers in Korea, has joined RippleNet to connect with Siam Commercial Bank (SCB), Thailand’s largest bank in terms of market capital. This should speed up and scale payments between the two countries.
Remittance services are a huge necessity with 184,000 Thai nationals living in South Korea, the third largest diaspora after Chinese and Vietnamese nationals. According to Ripple, the number of transactions sent via RippleNet for this corridor (South Korea-Thailand) has doubled compared to the previous year.
Subash Chandra Poudel, Director and COO at GME Remittance, said: “We have chosen Ripple as our partner because with RippleNet we can start with new partners in new countries within 1-2 weeks. This has drastically reduced the time-to-market and gives us an advantage over our competitors.
Emi Yoshikawa, Vice President of Corporate Strategy and Operations at Ripple, added, “The remittance corridors that require high-performance payments into this region are growing exponentially – people need to send money around the clock, including holidays and weekends.”
The blockchain company is heavily invested in the APAC region, with transactions growing 130% year over year, driven by existing RippleNet customers and new connections.
Ripple’s success in the Asia-Pacific region contrasts with the stiff regulatory opposition it faces back home, in the United States, particularly in the form of the SEC’s complaint that Ripple and two people, CEO Brad Garlinghouse and co-founder Chris Larsen, participate in the sale of unregistered securities.
The SEC lawsuit against Ripple has grown in popularity due to its potential to clarify the regulatory framework for the digital asset ecosystem.
Meanwhile, crypto asset exchanges operating in the United States have removed XRP from the list to avoid a financial regulator complaint.
But this initiative could be in vain. A recent letter from SEC chairman Gary Gensler to Senator Warren specifically stated that “the likelihood is very small that for 50 or 100 tokens, a given platform has zero securities.”
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Last week, CEO Brad Garlinghouse implicitly raised his tone against the SEC by comparing the agency to an alcoholic. That comment followed a speech given by the SEC’s Gensler, which was about “a lot of clarity, actually” for the crypto industry regarding regulation.
This view is not shared by the majority of market participants in this area, nor by two SEC commissioners, Hester Peirce and Elad Roisman.
As for the reasons the company isn’t relocating outside of the United States, Mr Garlinghouse said that to some extent, Ripple has already done so. The blockchain specialist is expanding its presence in the Asia-Pacific region. The company recently announced the go-live of its On-Demand Liquidity (ODL) product in Japan.
“As a company based here in the United States, I want the United States to be successful in this area. I want to work with the US government to provide clarity, to provide certainty. But trying to get that clarity through enforcement is not the right answer in my opinion, ”he said, adding that the company is not yet ready to give up on the United States entirely.