The issuers of the world’s third largest digital currency, Ripple, have called for the United Kingdom to follow Japan’s regulatory lead and bring some order to the “wild west” of the cryptocurrency market.
After a difficult start to 2018, calls for the regulation of cryptocurrency and related services have been widespread. Financial watchdogs, governments, and investors alike are pushing for legislators to take action and now Ripple has added its voice.
Ripple want legislators to end “wild west” days of the crypto market
The Telegraph reports that Ryan Zagone (Head of Regulatory Relations for Ripple) has urged the UK’s legislators to treat the new technology like the early days of the internet so they can strike a balance between addressing risks and facilitating innovation.
According to Ripple, an approach similar to the one taken by the Japanese FSA (in the wake of high-profile hacks) would help address some of the immediate problems posed by lack of widespread, consistent regulation. This would include the introduction of AML (Anti Money Laundering) regulations, ensuring customer’s security, and providing financial stability.
Ripple an important voice
Ripple is the third largest crypto asset on the market, so their opinion is bound to carry weight. The network can handle 1500 transactions per second putting them on the same level as Visa and other card networks. Ripple differs from many other cryptos due to its use of centralized servers, and this may give their opinion more clout in the UK.
Decentralization is an issue that splits opinion among the crypto community, but the legislators in the UK tasked with investigating cryptocurrency (like the BoE’s Mark Carney) are certainly advocates of maintaining the status quo — A central bank governor doesn’t like the idea of decentralized currency, who’d have thought? As a result, it is possible that Ripple and other projects that use centralized servers may be looked upon favorably.
The UK is already on the road to introducing regulations
The nation has been slow to respond to the challenges posed by the crypto sphere, but with the formation of a crypto task force, the FCA’s review of crypto assets due later this year, and the UK’s decision to join the European Blockchain Partnership, it is clear that they are planning on making their move soon.
The call from Ripple shows their hope for regulations to come into play sooner rather than later, and their eagerness to be involved in the discussion when they do.
Michael is an English and Creative writing graduate of Liverpool John Moore’s University, a former editor of several magazines, and a crypto-currency enthusiast. He is mostly interested in crypto-legislation and the potential of decentralized technology to change the world.