A trustworthy currency conversion tool has added XRP to its list of currencies, sparking discussions in the community along with Bitcoin (BTC) and Ethereum (ETH).
King Valex, a prominent figure in the XRP community, recently brought attention to Valutakalkulator, a Norwegian currency converter and calculator that aims to offer valuable data on exchange rates for various currencies worldwide.
Upon a quick examination of the platform, it is evident that XRP is among the listed currencies, alongside six other cryptocurrencies including Bitcoin, Dash (DASH), Dogecoin (DOGE), Ethereum, Litecoin (LTC), and Monero (XMR). While most of these assets have already received regulatory clarity as currencies, XRP stands out with its legal approval.
Valutakalkulator exclusively focuses on currencies, with limited coverage of cryptocurrencies that have faced scrutiny by various regulatory bodies. For example, the U.S. SEC has filed charges against companies like Binance and Coinbase, accusing them of offering services related to cryptocurrencies that are considered “unregistered securities.”
The classification of a cryptocurrency as a currency or security has significant legal implications. As a currency, a crypto asset is primarily used for transactions and is subject to financial regulations focusing on anti-money laundering (AML) and know your customer (KYC) requirements. On the other hand, a cryptocurrency classified as a security is considered an investment vehicle and is governed by securities laws that mandate registration and disclosure to protect investors.
Despite the majority of cryptocurrencies not being registered with the SEC, they are still bought, held, and sold by U.S. citizens, prompting the SEC to allege violations of securities laws and assert authority over these assets.
XRP has been at the forefront of legal battles due to its classification as a security, with Ripple, its largest holder, facing allegations from the SEC. The community remains divided on whether XRP should be considered a security or not.
While Valutakalkulator’s categorization of XRP as a currency may resonate with the XRP community, it holds little legal weight. It is worth noting that a U.S. judge has already declared XRP as a non-security in the SEC vs. Ripple case, and reputable government entities in various jurisdictions also support this view.
Please note that this article is for informational purposes only and should not be taken as financial advice. Readers are advised to conduct their own research before making any investment decisions. The views expressed in this article are solely the author’s and do not necessarily reflect The Crypto Basic’s opinion. The Crypto Basic is not liable for any financial losses incurred.