What is XRP
XRP is the native cryptocurrency of the XRP Ledger, designed for fast, low-cost cross-border payments. It's closely linked to Ripple Labs, which promotes its use among financial institutions.
The project was for years at the centre of a legal dispute with the US SEC over the token's classification (whether it counts as a security), a regulatory uncertainty that has weighed on its price over time.
Frequently asked questions
Is XRP regulated in the UK?
The UK has its own evolving regime for cryptoasset regulation, separate from the EU's MiCA framework. Crypto exchanges and custodians must register with the FCA for anti-money laundering purposes, but this doesn't equate to the investor protections that regulated financial instruments like ETFs and shares carry.
What's the difference between buying XRP on an exchange versus via an ETP?
On an exchange you hold the keys directly (or the exchange custodies them for you); an ETP (Exchange Traded Product) is instead a listed financial instrument that tracks the price, purchasable through the same broker account you'd use for ETFs and shares.
How is XRP taxed in the UK?
Gains from cryptocurrencies in the UK are generally subject to Capital Gains Tax, with specific rules that differ from those for ETFs and shares held in an ISA — this is an evolving area, so check the latest HMRC guidance or speak to a tax adviser for your situation.
