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A senior Ripple official called on British regulators to revise their "wait and see" approach to cryptocurrencies and called for new rules introduced by Japan's tastes.
While cryptocurrencies are generally considered financial instruments designed to circumvent government controls or central bank supervision, Ripple (XRP) – the third largest cryptocurrency in the world with a market capitalization of more than $ 26 billion – the government to intervene and set rules for the crypto sector.
As reported by The Telegraph, Ryan Zagone, Head of Regulatory Relations at Ripple, called on regulators to focus on three pillars: consumer protection, financial stability and the fight against money laundering . risk and innovation. "
Comparing the current regulatory environment to the early days of the Internet, the Ripple official was quoted as saying:
At the present time, we need more clarity and rules, and we need more certainty. This is the right time to start reviewing this "wait and see" approach of regulators. »
For years, the UK's innovation-friendly policies have largely supported blockchain technology and cryptocurrencies, despite calls for regulatory oversight and crackdown on the use of cryptocurrency . London is often considered one of the world's leading Fintech centers.
Nevertheless, the United Kingdom could be inspired by Japan, which has been a "leader", according to Zagone, by creating a regulatory structure that saw Bitcoin recognized as a legal means of payment last year following a revision of its law on payments. & # 39 ;. Under new laws, Japan's national cryptocurrency exchanges are mandated to register with the country's financial regulator and obtain a license to operate a platform. Domestic exchange trading.
Settlement, according to Zagone, is essential to help the market mature and attract new competitors in the cryptocurrency industry. This was certainly the case in the case of Japan where companies like SBI and Yahoo Japan operate and hold shares in cryptocurrency exchanges respectively. The Messaging giant Line, valued at $ 9 billion, with more than 600 million registered users, has also filed an application with the Japanese regulator to open its own crypto exchange system.
Ripple's Zagone added:
The regulations create the safeguards on the highway that allow the entry of new entrants, especially institutional investors.
The United Kingdom, for its part, is undertaking a number of initiatives to better understand and perhaps even regulate cryptocurrencies in the future.
The UK Treasury Select Committee, a powerful group of multi-party politicians and MPs, has launched a cryptocurrency survey for lawmakers to learn about cryptocurrencies before drafting policies for space.
"It is time for Whitehall and Westminster to better understand cryptocurrency and reflect more clearly on the political environment of blockchain technology," said Committee member Alison McGovern in February
.
In March, the Chancellor of the British Exchequer Philip Hammond announced the creation of a new "Cryptoassets Task Force" composed of the Bank of England, the Financial Conduct Authority and Her Majesty & # 39; s Treasury to study the risks and benefits of cryptocurrencies.
Image from Shutterstock.
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