Ripple Calls for balanced UK Cryptocurrency regulations, calling Japan “the leader” of cryptocurrency regulation. He added that some other nations, including the UK, could follow Japanese approach and use it as an example.
17 April, AtoZ Markets – Ripple, the third largest cryptocurrency by the market capitalization, has reportedly asked the UK regulators to end the “Wild West” of cryptocurrency market by establishing the new framework to abide by. The Ripple representatives have called on the UK to follow the approach of Japan.
Ripple Calls for Balanced UK Cryptocurrency Regulations
The head of regulatory relations at Ripple, Ryan Zagone, has asked the UK authorities to find a balance between “capturing risk and enabling innovation”. He has referred to three principles for the proposed regulations: consumer protection, anti-money laundering, and financial stability. Mr. Zagone has also compared the current framework on cryptocurrencies to the early days of the Internet:
“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.”
Following on this, Mr. Zagone has also called Japan “the leader” of cryptocurrency regulation. He added that some other nations, including the UK, could follow Japanese approach and use it as an example. In fact, last year, Australia has moved to follow Japan’s direction, thus declaring Bitcoin and other cryptocurrencies legal tender during summer 2017.
Current UK Cryptocurrency Position
As of now, it is still uncertain whether the UK will adopt the regulations similar to Japan or continue making regulations stricter. The UK’s Chancellor Philip Hammond has launched a new taskforce last month to protect consumers. He has added that it will help to “manage the risks around crypto-assets”.
Moreover, the central bank of the UK, the Bank of England has warned that cryptocurrencies might face a regulatory crackdown. BoE governor Mark Carney has stated that they had “hallmarks of a bubble”.
Mr. Zagone has claimed that regulation is crucial for the cryptocurrency markets to mature:
“Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors.”
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