One of the senior officials of Ripple has accounted several British Officers to end their ‘wait and see’ approach and requested for changing the rules just like Japan did recently.
Same like other cryptocurrencies, Ripple is generally known as a financial instrument to circumvent government regulations and to overdraft the rules of Central Bank. This news has been buzzing around the world quite rapidly. As Ripple is the third largest cryptocurrency right now with a huge market cap of $26 Billion it has taken step towards calling the UK government to step in and set aside separate rules and regulations for the crypto sector.
As per the report from ‘The Telegraph’, the head of rules and regulations of Ripple, Ryan Zagonedirected the regulators to focus on three ‘pillars’ which are financial stability, consumer protection and anti money laundering while drafting and delivering regulations that sustains a balance between “capturing risk and enabling innovation.”
Ripple was officially announced comparing the current regulatory environment with the early days of Internet and quotingthat, “We’re at that time now where we need more clarity and rules and we need more certainty. It’s a good time to start revisiting that ‘wait and see’ approach taken by regulators.”
The United Kingdom’s pro-innovation policies have always been in support of blockchain technologies and cryptocurrency in spite of getting regular calls from the regulatory oversights and clampdowns. When it is concerned about the India’s leading fintechhubs it is London.
As per the current competition, UK should surely take an example of Japan which is currently leading in this market. Ryan Zagone says that when Bitcoin was accepted as a global and legal payment method in the previous year, The rules from the ‘The Payments Act’ were also been revised. As per the new laws domestic cryptocurrency exchanges in Japan must register with the country’s financial regulator and gain a license to operate a domestic exchange trading platform, they have made it mandatory.
Ryan Zagone also argued with the fact that the market mature must be helped and entry of new users must be appreciated in the cryptocurrency sector. The statement is absolutely true as Banking Giants SBI and internet powerhouse Yahoo Japan have been operating and owning a stake in domestic cryptocurrency exchanges respectively. Line, the messaging giant with the capital of $9 billion and with over 600 million registered users has also filed an application to the Japan’s regulator to open its own cryptocurrency exchanges.
Ryan Zagone, The head of Ripple also added in his statement,
“Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors.”
Meanwhile, the UK is taking regulatory steps and new initiatives for the understanding of cryptocurrencies among it’s user. And also perhaps regulating the rules of cryptocurrency in upcoming future.
Also a powerful group of cross party politicians and MPs, The UK Treasury Select Committee initiated an analyzing campaign for the lawmakers to make them research and learn about cryptocurrencies before drafting any policies from the space.
In February, Committee Member, Alison McGroven said that,
“It is time that Whitehall and Westminster understood cryptocurrency better, and thought more clearly about the policy environment for blockchain technology.”
In March, the UK’s Chancellor of the Exchequer Philip Hammond announced a new ‘Cryptoassets Task Force’ which also consisted of Bank of England, the Financial Conduct Authority and her Majesty’s treasure to analyze all the drawbacks and advantages of cryptocurrencies.