Ripple, the most centralized cryptocurrency among the market leaders, has asked regulators in the UK to follow Japan’s example by ramping up the rules and acting to corral the untamed cryptocurrency market.
As reported by The Telegraph, Ripple’s head of regulatory relations, Ryan Zagone, has requested that UK regulators find the sweet spot between “capturing risk and enabling innovation,” while specifying three “pillars” for lawmakers to focus their regulations on – consumer protection, anti-money laundering, and financial stability. He stated:
We’re at that time now where we need more clarity and rules and we need more certainty. It’s a good time to start revisiting that ‘wait and see’ approach taken by regulators.
Ripple, which works with central banks and other traditional financial institutions, is set to benefit the most from increased regulatory measures enacted by such institutions.
Zagone also calls on British regulators to emulate the Japanese model of cryptocurrency regulation — which is leaps ahead of the rest of the world.
Following the high-profile heist of leading Japanese cryptocurrency exchange Coincheck earlier this year — which saw $532 million in NEM stolen from the company — Japan’s Financial Services Agency (FSA) began requiring the country’s digital currency exchanges to apply for registration, which has successfully weeded out a number of the space’s unsafe players.
The FSA conducted on-site inspections of each and every unregistered cryptocurrency exchange applying for registration.
Late last month, Japan’s Financial Services Agency (FSA) ordered both Tokyo GateWay and Fukuoka-based Mr. Exchange to make significant improvements to their data security. Both exchanges were also ordered to improve various other safeguards which were found to be insufficient. They were unable to comply, and have since shut down.
Three additional exchanges — Raimu, bitExpress, and Bit Station — have also ceased operations.
Furthermore, Japan is also leading the charge in the effort to effectively regulate Initial Coin Offerings while ensuring positive growth and investor protection in the cryptocurrency space. Earlier this month, government-backed researchers proposed regulatory guidelines to facilitate safe practices in the country’s ICO space.
The UK has already created a task force, which includes the Bank of England and the Financial Conduct Authority — neither of which has shown support to Bitcoin and cryptocurrencies in the past. In March, Bank of England Governor Mark Carney — who has a long history of anti-cryptocurrency rhetoric — stated:
The short answer is: [cryptocurrencies are] failing. Cryptocurrencies are poor stores of value. Over the past 5 years, the daily standard deviation of Bitcoin was 10x that of sterling […] This extreme volatility reflects that the cryptocurrencies have neither intrinsic value nor external backing.
Meanwhile, Zagone affirms Ripple’s preference for a strong regulatory network over the cryptocurrency space, stating:
Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors.
What do you think about Ripple’s call for more cryptocurrency regulation in the UK? Let us know in the comments below!
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