One of the third world´s largest cryptocurrencies urged British regulators to adopt a Japanese-like model of regulations and end the “Wild West” days of cryptocurrency market.
For many years blockchain technology and cryptocurrency have been highly supported by United Kingdom innovation policies, to this date, London is considered among the world´s leading fintech hubs, but this policy has caught the attention of users, companies and regulators.
Ryan Zagone, head of regulatory relations at Ripple, urged UK regulators to find balance between, as he said, “capturing risk and enabling innovation”. Also highlighted, in Zagone’s opinion, were the three “pillars“ for regulators and law makers to target: consumer protection, anti-money laundering and financial stability.
“We’re at that time now where we need more clarity and rules and we need more certainty. It’s a good time to start revisiting that ‘wait and see’ approach taken by regulators,”
declared Zagone, referring to the regulatory environment of the early days of cryptocurrency.
According to Zagone, regulation is the “key” to create a mature market and find new boundaries for the cryptocurrency sector. He compared the British market to the Japanese, one of the biggest markets in terms of volume of transactions, where both cryptocurrency acceptance and market regulations have driven companies like Yahoo Japan, the Bank SBI and even the instant messaging giant Line, to express interest and invest in cryptocurrency and blockchain technology.
“Regulation creates the guardrails on the highway that allows new entrants to come in, particularly institutional investors.”
While cryptocurrencies are commonly seen as financial instruments meant to circumvent governmental controls or oversight from central banks for companies, a more stablished regulatory system could mean a safer environment for investors and big cryptocurrency companies.
by Samuel Larreal