Ripple, the creator of XRP, hopes to take advantage of its expanding presence in the UK with a regulatory white paper for UK policymakers.
The B2B blockchain payment system operator and XRP issuer Ripple has published a “regulatory white paper” with suggestions for UK legislators and regulators drafting laws on cryptocurrency policy.
The report’s recommendations are influenced by other regions that have advanced in enforcing crypto regulation, such as Dubai, Singapore, and the EU.
Differentiating between various forms of cryptocurrency for tailored regulation, coordinating between the crypto industry and the public sector, and educating lawmakers are just a few of the recommendations.
The regulatory paper is released as the cryptocurrency market is in a tailspin as a result of the shocking collapse of FTX, the second-largest exchange.
The mismanagement of the exchange’s funds was first reported on in leaked reports that surfaced earlier in November. This set off a chain of events that resulted in millions of users losing their money.
The Financial Markets and Services Bill is now the primary vehicle for a thorough regulatory framework for cryptocurrencies in the UK after a parliamentary vote in October approved amendments to include cryptocurrencies in its purview.
The FCA will be required to write rules if the bill is passed, and Andrew Whitworth, the policy director for Ripple, hopes that Ripple’s recommendations will be incorporated into that process.
Regulators in the UK will have a chance to work out the specifics of the new laws once the bill has been passed by policymakers.
The main suggestion made by Ripple is to implement a thorough legal framework that rates cryptocurrency assets in accordance with different risk profiles.
The U.S. Securities and Exchange Commission (SEC) has been suing Ripple since 2020, alleging that CEO Brad Garlinghouse and co-founder Chris Larsen sold $1.3 billion worth of unregistered securities.