Ripple CEO Brad Garlinghouse – Companies Would Move Abroad If Regulatory Insight Isn’t Clear
Ripple CEO Brad Garlinghouse has predicted that companies would begin to leave in droves if the Department of Justice doesn’t clarify its new contradictory framework.
Giving his response to the current regulatory framework that was recently released by the US Department of Justice (DOJ), he noted that companies would begin to leave the country to operate overseas. In his statement, Garlinghouse said, “We need a framework (like #DCEA) that provides clarity, protect consumers and foster innovations in the United States of America or companies would be forced to move their investment (or the whole company) overseas. Furthermore, Garlinghouse said he was not pleased with the contradictory nature of the framework.
Garlinghouse rues confusion on views regarding crypto amongst government agencies.
Given the displeasure, Garlinghouse said companies in the private sector would have difficulty following rules if five different government agencies have separate crypto views. It should be noted that the Department of Justice released an 83 paged report which talked about the framework to check the activities of companies involved in digital assets. The Department of Justice began the report by giving a clear and direct definition of some core terms in the crypto space such as wallets, miners, and crypto addresses.
Moving further, the document also talked about the various illicit use ranging from terrorism financing to tax evasion and using crypto to avoid sanctions. One fundamental problem for the DOJ was the anonymity of digital assets as criminals could use it to fund illegal business operations. The department stated that if crypto companies were adamant about knowing their customers through the know your customer (KYC) method, most of these atrocities would reduce.
Ripple dissatisfied with lack of regulatory framework in the United States
To round the detailed document, the Department of Justice mentioned the $700,000 fine slammed on Ripple Labs as far back as 2015. Recall that it was FinCEN sanctioned Ripple Labs for operating against the Bank Secrecy Act (BSA). Despite the DOJ’s view on crypto’s disruptive potential, it was quick to mention the importance of a working relationship between crypto companies and regulators to enforce laws. “In conducting such outreach, the department and its partners will continue their efforts to advance mutual goals such as safeguarding the virtual marketplace from theft fraud and hacking.
Having been on the receiving end of a regulatory sanction, Ripple has shown its displeasure over the lack of a single regulatory oversight in the United States of America. With the CEO’s recent statement, we can reasonably assume that the company is gradually running out of patience, and a move overseas might be in the offing. In an earlier report, a statement by the former CEO of Ripple claimed that the company was thinking about moving its headquarters abroad. The United States of America is currently moving at a very slow pace when it comes to FinTech companies’ regulations. As it stands, China, the United Kingdom, and Japan are presently slugging it out to be the number one FinTech center in the world.
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