Ripple shares proposed guidelines for United Kingdom crypto regulators November 15, 2022
Ripple shares proposed guidelines for United Kingdom crypto regulators <br><br>
Ripple shares proposed guidelines for United Kingdom crypto regulators
A company running a B2B blockchain payment system, Ripple has shared a “regulatory white paper” drafting laws on crypto policy with recommendations for UK policymakers and regulators.
Susan Friedman, head of public policy at Ripple said, “In order to be able to operate most effectively here, in order to continue to grow our business, it matters what the regulatory framework looks like and so we are invested in trying to ensure the best outcomes.”
The recommendations shared in the report are inspired by the countries that are already ahead in enforcing crypto regulations, such as Singapore, the EU, and Dubai. The guidelines explain the difference between different types of crypto for bespoke crypto regulations making coordination with the public sector and crypto industry and educating the lawmakers.
“We appreciate that the UK may not be the first mover in all of these and we think there’s an advantage to that, there is value in seeing how different frameworks unfold and adopting best practices, said Friedman.
After the shocking liquidity crunch of the former second biggest crypto exchange, FTX, and where the industry is spiraling down in trends, this regulatory paper is published. The mishandling of the exchange funds led to the crash of FTX, which has led many crypto users in the dark.
This was the reason Friedman urged for proper crypto regulations. She said, “When you look at the past week, what we’ve seen is that absent a regulatory framework, what happens is providers will drive liquidity offshore, referring to the FTX headquarters in the Bahamas while it provided its services globally. “There is no separate mechanism for UK authorities like the Financial Conduct Authority to provide protections for consumers.”
In October, after an amendment to include crypto in its scope was passed in the UK, the main vessel for a comprehensive crypto legislative framework becomes the Financial Markets and Services Bill.
Ripple’s policy director, Andrew Whitworth said, “The FCA has the power to then go through and actually create the details of the provision,” Whitworth said in the same interview with The Block. “It should work since it is the same bill which creates an institutional framework and also includes crypto assets within the financial regulatory space.”
The guidelines shared by Ripple focus to bring a concise legal framework into force, which assesses crypto-assets according to distinct risk profiles.
He suggested, “There are different business models, different technologies, different blockchains. We’re not talking about one single thing called crypto, which should be regulated. A crypto regulatory framework should “recognize the different risk profiles and provide them with different regulatory treatments. It’s something the regulators know already about the traditional regulatory frameworks, but often when the policy discussion around crypto happens, that distinction gets forgotten.”