In a tweet on Tuesday, Ripple posted a policy paper that it thinks can direct UK cryptocurrency rules and help it become the hub it wants to be for the crypto industry.
The policy paper was created by Ripple based on feedback from the industry professionals and observers it consulted with this year, according to the document co-authored by Susan Friedman, Director of Public Policy at Ripple. It further claims that it represents the blockchain company’s perspective on the UK’s current condition of cryptocurrency asset regulations and what may be done to turn the country into a hub for the crypto enterprise.
The study’s publication is noteworthy because it occurs right as legislators are getting ready to make changes to the UK’s Financial Markets and Services Bill, which will serve as the foundation for the nation’s regulatory framework for cryptocurrencies.
In its proposals, Ripple emphasises that the UK must first identify the various forms of crypto assets and their risks before establishing crypto legislation.
“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.
Additionally, the blockchain payments company identifies three more pillars that must be in place in addition to regulation to foster a flourishing environment for the developing cryptocurrency 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’s important to remember that the UK stated its interest in becoming a crypto hub in April, under the leadership of Rishi Sunak, who was then the Finance Minister and now Prime Minister. The Royal Mint was mandated to produce an NFT by the Finance Ministry as well. The latter, however, has yet to occur.
Interestingly, Sunak was a supporter of the Financial Services and Markets Bill. Many anticipate a rise in crypto adoption in the UK under his leadership because he is viewed as a crypto-friendly prime minister.
It’s important to note that, according to a City A.M. report from October, the UK already has the biggest crypto economy in Europe, with $233 billion in transactions from July 2021 to June 2022.
According to a report, the nation also just authorised a bill to use blockchain technology in an electronic-based record-keeping system as it migrates to a digital means of documenting in its commerce business.