Ripple Denied BitLicense: CTO Schwartz Slams Bitcoin Favoritism

Ripple, the blockchain-based payment protocol, has faced regulatory challenges in recent months, with its native cryptocurrency, XRP, being the subject of scrutiny by the U.S. Securities and Exchange Commission (SEC). In a recent development, Ripple has been denied BitLicense applications in both New York and Texas, further complicating its regulatory landscape.

Ripple's Chief Technology Officer, David Schwartz, has been vocal about the company's push for a level playing field in the cryptocurrency sector. In a recent interview, Schwartz highlighted the discomfort of certain groups with the push for equitable regulatory treatment across the cryptocurrency sector. He stated, "We started pushing for a level playing field where the government doesn’t play favorites. That was always what the maxis most feared." His remarks underscore the perception that Bitcoin benefits from regulatory favoritism, creating barriers for other cryptocurrencies to compete on equal terms.

In response to questions about Bitcoin’s future, Schwartz acknowledged its current market dominance while expressing skepticism about its technology as a long-term value driver. He remarked, "I think Bitcoin stays number one for a long time because the value of money doesn’t come from its technology but largely from network effects. But who knows." Schwartz implied that Bitcoin's dominance is not guaranteed indefinitely, especially if a "level playing field" materializes.

Meanwhile, KuCoin, a Seychelles-based crypto exchange, has pleaded guilty to operating an unlicensed money-transmitting business and agreed to pay $300 million in combined fines and forfeitures. The penalties consist of a $113 million fine and $184.5 million in forfeitures. KuCoin founders Chun Gan and Ke Tang were charged with conspiring to operate an unlicensed business and failing to implement an anti-money-laundering program. Both agreed to deferred prosecution agreements and will forfeit $2.7 million each.

The indictment alleged that KuCoin violated the Bank Secrecy Act by failing to verify customer identities, establish proper anti-money-laundering protocols, and file suspicious activity reports. These compliance failures reportedly enabled the exchange to process billions in transactions, including those tied to illicit activities.

The exchange previously settled a civil case with the New York Attorney General’s Office in December 2023, paying $22 million in fines and agreeing to stop operations in the state. New York authorities had