The B2B blockchain settlement system operator and XRP emitter Ripple has published a “regulatory whitepaper.” It contained suggestions for United Kingdom (UK) legislators and regulators formulating ethics for cryptocurrency operations.
According to Susan Friedman, director of public regulation at Ripple, “the regulatory environment outlook determines the operation of crypto service providers and exchanges. There is a need for codes that will enable us to function efficiently here and to continue growing our business.” Therefore, we have a vested interest in pursuing the best results.
An Overview of Ripple’s Recommendation
The report’s proposals are influenced by other regions that have advanced in implementing crypto law, such as Dubai, Singapore, and the EU. The tremendous success the above countries have achieved in formulating crypto regulations will eventually make the industry safe.
The recommendations entail; Differentiating between various forms of cryptocurrency for tailored regulation, the need for collaboration between the crypto industry and the public sector, and educating lawmakers are just a few of the recommendations. According to Friedman, if the UK can study the various crypto frameworks developed by other countries, it will stand out when it enacts its crypto regulation.
The recommendation paper was released last week when the cryptocurrency market was in a tailspin. However, the root cause was the catastrophic collapse of FTX, the second-largest exchange. The mismanagement of the exchange’s funds was first reported in leaked articles in November.
This set off a chain of events that resulted in millions of users losing their money, and this revealed how urgent regulation is needed.
The United Kingdom’s Crypto Regulation Plan
The Financial Markets and Services (FMS)Bill is the primary vehicle for a thorough regulatory framework for cryptocurrencies in the UK. It attained the status after a parliamentary vote in October approved modifications to include cryptocurrencies in its purview. According to TheBlock report, the FCA will be required to write codes for crypto operations if the bill is passed.
Therefore Andrew Whitworth, the program supervisor for Ripple, expects that “Ripple’s recommendations will be incorporated into that process. UK authorities can work out the actionable elements of the new regulations if lawmakers pass the bill.” In addition, the key suggestion made by Ripple is to implement a thorough legitimate structure that rates cryptocurrency assets by different risk profiles.