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Ripple adds the architect 'BitLicense & # 39; Ben Lawsky on the Board of Administration

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BitLicense architect Ben Lawsky has joined Ripple & 's board of directors # 39; s startup of fintech.

Lawsky, a former federal prosecutor, was a thorn in the foothold of Wall Street banks during his tenure as the first superintendent of the New York State Department of Financial Services. However, in the cryptocurrency ecosystem, he is best known for the role he played in regulating the nascent bitcoin industry.

To this end, he contributed to the creation of the controversial regulatory framework of New York's digital currency, more commonly known as BitLicense . Although embraced by some big bitcoin companies, many small startups found that compliance with regulations was untenable, which led to the creation of " Great Bitcoin Exodus " in 2015 ShapeShift's CEO, Erik Voorhees, called the framework " Orwellian " and stated that the regulations made customers' information vulnerable to cyberattacks.

Shortly after the finalization of BitLicense, Lawsky left the agency to found a consulting group that, among other things, advises bitcoin companies on how to maintain regulatory compliance. However – despite the bad optics of leaving – Lawsky is not allowed to consult companies looking to apply for a BitLicense.

Lawsky Appointed to the Ripple Board of Directors – an initiative likely to address the concerns of major financial institutions who are cautious about integrating their products with the blockchain platform of Ripple – and in particular with XRP, the local currency of the Ledger of the Ripple Consensus.

"Ripple is the first business blockchain company in the world today and truly understands the importance of regulatory-based innovation," said Mr. Lawsky in a press release that accompanied the announcement. "The company and its leaders are passionate about making our global financial system more efficient, safer and more equitable."

Ripple, incidentally, was the first company to receive a BitLicense for a case of institutional use of digital assets (and the fourth company overall).

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Last week, the company announced a major partnership with the American Express credit card giant to form a US payment channel that will use Ripple's block of business blocks to settle international payments in seconds.

Featured image from YouTube / City & State.