So far it has been chiefly regulators that have been uncertain about the future of the crypto industry. However, a cryptocurrencies itself has decided it is time to step up and assume responsibility for the future of the whole industry.
The San Francisco-based Ripple has appealed to regulators across the United Kingdom to work on a legal status for the cryptocurrency. With this in mind, this is the strongest appeal that comes from a cryptocurrency to regulate the market and make it possible for these assets to co-exist, or even overtake FIAT money.
Now, the surprising, and then again not entirely strange thing, about this demand is that cryptocurrencies are by nature not willing to work with financial regulators. They see themselves as operating beyond the reach of these institutions and it would be quite understandable why any embroilment with the potential enemy is unwanted.
Back to the news, though, Ripple has urged the United Kingdom to assume an approach that is similar to what Japan is doing right now. Japan is working on a way to make crypto investments safe and legal.
Britain’s history of negotiation a cryptocurrency
To say that Britain has overly-zealous to introduce and legalise cryptocurrencies would of course be an overstatement. However, the country has had a very conscious attitude towards all cryptocurrencies. The Bank of England has urged that any transactions carried out in crypto should undergo regulatory scrutiny.
The Telegraph, a British daily newspaper, has reported that Ripple Head of Regulations Ryan Zagone has reportedly spoken to UK regulator, hoping to strike a balance between ‘capturing risk and enabling innovation.’
However, to have a working regulation, you will also have to make companies that dabble in cryptocurrencies meet common banking standards. For starters, they will have to comply with very common practices, including:
- Financial stability;
- Consumer Protection
- Anti-money laundering;
However, all of this requires that cryptocurrencies are way ore open to outside intervening and regulation that they are presently. With this in mind, it is strange that Mr Zagone is asking regulator to step in. Alternatively, he may be inviting other cryptocurrencies to rally behind Ripple and try to break into the mainstream, which is another distinct possibility.
The authors in this blog think, however, Ripple is onto a good thing. With China putting all its efforts into stabilising its digital economy, it would help for crypto investors elsewhere to rally under a common banner and attempt to act promptly. It would help to also have a central body that regulates cryptocurrencies, but this would require an international convergence of countries that usually try to manage their finances separately while adhering to a common international framework. It is quite understandable why Ripple is making a steady push for better regulation in a sector that is virtually left without regulation.
With this in mind, more cryptocurrencies may soon be jumping the regulator bandwagon. Even though Japan, for instance, has been relatively lax on crypto, the Bank of Japan (BoJ), the country’s central body, has been quite firm in their resolute to oppose cryptocurrencies.
During a recent M&A BoJ has cautioned Japanese citizens to avoid investing in cryptocurrencies. Not surprisingly, South Korea, which has been a proponent of all things crypto has also made a similar effort and attempted to warn its citizens against investing such copious amounts into assets that may have little to no applications in real life. With this in mind, it would be understandable why people have been calling for crypto either to go completely open or to go back in the Internet nether.
Ripple will not be the first and only company to ask from regulators to help it build a meaningful infrastructure that will help everyone participate without having to worry about their finances. The crypto currency is one of the best tokens out there and it is rivalled only by Ethereum and QTUM in terms of efficiency. Bitcoin is definitely an undisputed leader in the mix but only by a merit of its size and the total amount of Bitcoin tokens that are currently in circulation.
What Ripples suggest is a workable solution for everyone interested to legalise cryptocurrencies and help them enter the mainstream. Fellow cryptonoids should welcome and embrace this move.