Ripple Urges UK To Craft Regulatory Framework For Crypto Industry• November 16, 2022 9:40 pm • Comments
Despite the current ongoing lawsuit that has been going on between Ripple and the SEC, the blockchain company is continuing to pursue friendly relations on the international stage.
Right now, Ripple has been working on making progress with lawmakers in the UK and has issued a new regulatory whitepaper in preparation for the UK’s Financial Markets and Services Bill.
This bill would be critical for defining the overall framework for how the country will regulate crypto which is why Ripple is aiming to provide recommendations on this matter.
The bill was introduced back in July 20 of this year and may soon take effect in the near future.
Ripple’s recommendations were focused on making sure that there were clear regulatory guidelines that businesses could follow which is something that is lacking back in the United States.
— CryptoMoon (@cryptomoon631) November 16, 2022
The core of Ripple’s recommendations center around finalizing “a clear regulatory framework that distinguishes between different types of crypto asset activity,” as led by their respective risk profiles, which Ripple argues can vary widely.
The crypto firm argues that any upcoming legislation should “delineate clearly” between consumer-facing and solely business-supporting propositions.
Crypto companies should also be treated differently according to “the level of interconnection with the rest of the economy and hence the potential risk they pose more widely,” according to the paper.
The whitepaper that Ripple wrote also dives deep into analyzing the environmental impacts that crypto has which is something that not all blockchain projects are concerned about.
Currently, Ripple’s XRP token uses a Proof-of-Consensus which is a much more environmentally friendly option when compared to Bitcoin which uses the energy intensive Proof-of-Work model.
As a result of this environmental focus, the UK legislators may potentially see Ripple’s white paper as very attractive and will help the country craft its own framework while following the steps of other countries that have already established successful frameworks.
Examples of such countries include crypto centers like Singapore, Dubai, and some parts of the EU.
— The Enforcer (@muaritel) November 16, 2022
Using these different regimes as a guide, Ripple wrote that the UK should craft its “own bespoke regulatory framework” to empower its crypto asset industry.
Such a framework will provide certainty and support to crypto businesses as they grow, in parallel with building trust among the wider public.
In addition, the whitepaper said there was an “urgent need” to improve education in the crypto asset space “across all levels of society,” deriding the current political discussion of crypto in the UK as a “punchline and political football.”
The U.S. Securities and Exchange Commission filed a lawsuit in December 2020 against Ripple Labs co-founder Christian Larsen and incumbent CEO Brad Garlinghouse, accusing it of selling unregistered securities.
The lawsuit, which is ongoing, hinges on whether the XRP token, primarily used for cross-border payments, can be classified as a security and should therefore be subject to different laws and restrictions.
Ripple details regulatory framework that could set the UK on the way to becoming a global crypto hub https://t.co/VYeyGDIxZm
— Luis_C (@LuisCor80246896) November 16, 2022
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