Ripple Proposes Crypto Regulations For UK Regulators
Ripple, a company whose payment systems run on a B2B blockchain and use XRP to perform cross-border payments, has published a regulatory white paper with suggestions for UK legislators and regulators regarding crypto-related laws.
In a recent interview, Susan Friedman, Ripple’s head of public policy, stated that the only way Ripple can operate and continue growing its business is to propose a suitable regulatory framework for the industry.
The report’s suggestions are influenced by policies in other countries like Dubai, Singapore, and the EU. This is because these regions are further ahead in ensuring that crypto regulatory laws are followed.
Differentiating between the different types of cryptocurrency designed for specific regulation, coordinating the crypto industry and the public sector, and educating lawmakers on cryptocurrency are just a few suggestions.
Furthermore, Friedman stated that they appreciated that the UK was not the first in this movement and that it was an advantage to them. She spoke about the value she sees in various frameworks that open the door to adopting best practices.
UK Crypto Main Framework
A parliamentary vote in October approved modifications to include cryptocurrencies in its scope in the UK. Thus, the Financial Markets and Services Bill has become the basis for a comprehensive regulatory framework for cryptocurrencies.
The policy director of Ripple, Andrew Whitworth, expects Ripples’ guidance to be involved in the rule-writing process alongside the FCA once the parliament passes the bill. As a result, regulators in the UK will have an opportunity to work out the specifics of the new legislation once politicians have passed the bill.
In a separate interview, Whitworth stated that the FCA would have the power to create provisional content if the parliament passed the bill. However, the critical suggestion made by Ripple is to implement a comprehensive legal framework that rates cryptocurrency assets per different risk profiles.
Whitworth stated that the regulators are not treating cryptocurrency as a single entity for regulatory purposes. Instead, they look at a broader aspect because it comprises various business models, technologies, and blockchains.
He continued, “A regulatory framework for cryptocurrencies should understand the various risk profiles and provide them with various regulatory remedies.” He further said, “Regulators are aware of this fact regarding conventional regulatory frameworks.
However, it is frequently overlooked during policy discussions involving cryptocurrencies.”
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