Riding on its growing presence in London, blockchain payment firm Ripple Labs Inc has published a regulatory white paper for policymakers in the UK regarding the crypto industry.
The published whitepaper focuses on the Financial Markets and Services Bill which will become the nation’s crypto regulatory framework after it is approved by the House of Parliament and House of Lords.
According to Susan Friedman, Ripple’s Head of Public Policy, the regulatory framework is integral to the growth of its business as well as its operations in the space. Therefore, the firm is making its contributions to ensure the best outcomes with its recommendations to UK regulators and lawmakers tasked with drafting laws for the industry.
Interestingly, Ripple’s recommendations draw inspiration from regulations in other climes that are already ahead with the enforcement of crypto laws. The report features input from jurisdictions like Singapore, Dubai, and the European Union (EU).
Recall that Dubai’s Virtual Asset Regulatory Authority (VARA) recently introduced new crypto marketing guidelines to safeguard investors. The new guidelines apply to all visual asset service providers (VASPs).
Citing the sudden collapse of FTX, Susan further stressed the need for regulations to protect consumers. According to her, service providers will exploit the absence of a regulatory framework to drive liquidity offshore.
In summary, Ripple recommends a comprehensive legal framework that treats crypto assets distinctively according to their risk profiles.
The UK’s Crypto Regulations
While the UK is not a leader as regards regulations for the nascent crypto industry, it could use this to its advantage as it could see how different framework unfolds and adopt best practices.
The Financial Services and Market Bill, when passed, will allow the government to deliver on its promise of an open, green, and technologically advanced financial services sector that would be globally competitive.
Additionally, the government also plans to regulate stablecoins as part of the Financial Services and Market Bill after the crash of the Terra-Luna ecosystem.
In conclusion, Andrew Whitworth, policy director at Ripple hopes the firm’s recommendations will make their way into the bill and become components of the new law after approval from policymakers. Embedded in the bill are guidelines on the safe adoption of digital assets.