Senior officer at Ripple has asked crypto regulators to revisit their “wait and see” approach and consider new regulations introduced by the likes of Japan.
Cryptocurrencies are generally considered as digital assets that are far away from government control and regulators’ oversight. However, taking a very un-crypto move, the third-largest cryptocurrency by market value, Ripple has itself called for crypto regulation from U.K lawmakers.
Ripple Calls For UK Regulations to Put an Ends to ‘Wild West’ of Crypto👉https://t.co/bB891rzqQx👈#Ripple #cryptocurrencynews #cryptocurrency #XRP #regulations #Cryptocurrencies #AML #UnitedKingdom #MarkCarney pic.twitter.com/tEdpkfhWwE
— CryptoComes (@CryptoComes) April 17, 2018
In an interview with The Telegraph, Ripple’s director of regulatory relations Ryan Zagone has urged U.K regulators to design regulations that sustain a balance between “capturing risk and enabling innovation” while focusing on the three “pillars” that are consumer protection, financial stability and anti-money laundering.
Comparing internet’s early stages and the current crypto regulatory environment, Zagone said:
“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 U.K government had been crypto friendly for years. Its pro-innovation policies had been very supportive of blockchain technology and digital currencies, despite of the constant demands for regulations in the sector.
According to Zagone, U.K can still take a few examples from Japan, which has accepted Bitcoin as a legal method of payment, last year. Under the new legislation, cryptocurrency exchanges in Japan are required to be registered under country’s financial regulator in order to operate their crypto trading platforms.
Zagone believes that a new set of rules could be very efficient for the market to mature and would likely create “guardrails” to attract new entrants in the crypto sector. This has undoubtedly proved true in Japan’s case as new participants are widely stepping in the crypto threshold.
“Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors,” said Zagone.
Yahoo Japan has acquired stake in a local crypto exchange, while the financial giant in the country, SBI and the popular messaging app giant ‘Line’ with a market value of over $9 billion are looking into launching their own crypto exchanges.
Meanwhile, the U.K government is taking its time to study and understand cryptocurrencies before implementing any set of rules. In February, The UK Treasury Select Committee, a powerful group of cross-party politicians and members of the parliament, launched an inquiry into Bitcoin and other cryptocurrencies in an attempt to better understand them prior to creating any policies.
“It is time that Whitehall and Westminster understood cryptocurrency better, and thought more clearly about the policy environment for blockchain technology,” said a Committee member, Alison McGovern.
In March, UK Chancellor of the Exchequer Philip Hammond announced a ‘Cryptoasset Task Force’ that included Her Majesty’s Treasury, The Bank of England and the Financial Conduct Authority to research about cryptocurrencies, their advantages, disadvantages and the risks involved while handling them.