San Francisco Ripple, the owner of the third largest cryptocurrency in the world, asked the British regulators to put an end to the days of the “Wild West” of cryptocurrencies. The company urged the UK to follow in the footsteps of Japan in implementing a structured regulatory framework to encourage safe and legal investments in digital currencies.
Britain urged to hit the balance
According to The Telegraph, the head of Ripple’s regulations, Ryan Zagone, urged British regulators to find a balance between “risk taking and the possibility of innovation”. The three areas highlighted for the proposed regulation are financial stability, consumer protection and combating money laundering.
Zagone compared the current status of the crypto industry with the early days of the Internet and added:
We are now where we need more clarity and rules, and we need more confidence. A good time to start revising this approach is to “wait and see”, adopted by regulators
Japan led the legitimization and regulation of the cryptocurrency and is the leading country in the world for the digital assets and investment. In the UK, it was much slower to react, perhaps because of Brexit’s negotiations, which stretch and dominate national politics. British Chancellor Philip Hammond in March introduced a new task force that will help protect consumers.
Unsurprisingly, the Governor of the Bank of England, Mark Carney, took the position of most of the central bank bosses and called for a silence, saying that the cryptocurrencies have “distinctive features of the bubble”. Zagone argued that regulation is necessary to help the markets ripen and attract new entrants:
Regulation creates fences on the highway, which allows new participants to participate, especially institutional investors
Bankers clearly prefer full repression, because their business model is threatened by a decentralized currency. British bank Barclays took some strange steps, comparing Bitcoin with “infectious disease” in one case, and then in partnership with Coinbase, one of the world’s largest exchanges, in another.
It remains to be seen what path the UK will take with respect to the cryptocurrency. He can follow in the footsteps of Japan and welcome the industry, which will generate new innovations and new investments in business. Or he can choose to pinch, forcing companies, traders and investors abroad to crypto-friendly countries.