As the UK closes in on completing its crypto regulatory framework, Ripple has released a whitepaper in hopes of guiding lawmakers.
Ripple shared a policy paper it believes can guide the United Kingdom’s crypto regulations such that it becomes the crypto hub it desires to be in a tweet on Tuesday.
#Crypto solutions present a dynamic opportunity for financial and commercial actors in the UK, but proper regulation is key to realizing this.
— Ripple (@Ripple) November 15, 2022
Per the document co-authored by Ripple’s Public Policy Director Susan Friedman, Ripple prepared the policy paper based on the comments of industry experts and observers it consulted with this year. Additionally, it asserts that it reflects the blockchain company’s view of the state of crypto asset regulations in the UK and what it can do to become a crypto hotbed.
Notably, the paper’s release is well-timed as it comes just before lawmakers prepare to make revisions to the UK’s Financial Markets and Services Bill, which will form the basis of the country’s crypto regulatory guidelines.
Ripple, in its recommendations, highlights that before the UK can create crypto regulations, it had to first distinguish between the different types of crypto assets and the risks associated with them.
“One core distinction is between consumer-facing and business-facing cryptoasset service provides which present different opportunities and risk respectively,” Ripple writes, emphasizing the importance of these differences.
Furthermore, the blockchain payments company points out three pillars going beyond just regulation that needs to be in place to create a budding environment for the emerging crypto sector.
- Comprehensive and nuanced regulations that account for different crypto assets and their accompanying risk
- Increased regulatory resources and coordination amongst regulators, allowing for efficient responses to new developments
- Education of both policymakers and the general public about the benefits and risks of the sector
It is worth noting that in April, under the guidance of then Finance Minister cum Prime Minister Rishi Sunak, the UK declared its interest in becoming a crypto hub. The Finance Ministry also ordered the Royal Mint to create an NFT. However, the latter is yet to happen.
Notably, Sunak was also one of the proponents of the Financial Services and Markets Bill. Seen as a crypto-friendly Prime Minister, many expect to see growth in crypto adoption in the UK under his leadership.
It bears mentioning that the UK is already the largest crypto economy in Europe, seeing $233 billion in crypto transaction volume from July 2021 to June 2022, per a City A.M. report in October.
The country also recently approved a bill to utilize blockchain technology in an electronic-based record-keeping system as it transitions to a digital method of documentation in its trade industry, per a report in October by The Crypto Basic.