Ripple’s head of regulatory called on U.K. to relook into delays of announcing cryptocurrency regulation saying that predictable regulation can help promote to markets by attracting new entrants, especially institutional investors. Financial Conduct Authority said it will study cryptocurrency regulation situation and publish recommendations in the third quarter of the year.
Ripple’s head of regulatory regulations, Ryan Zagone is calling on U.K. regulator to strike a balance between capturing risk and enabling innovation in cryptocurrency industry.
There is no doubt that certainty isn’t there in terms of regulating cryptocurrencies, but that is happening because a number of governments are working on regulation or waiting to first understand the situation before announcing regulation. On its part, Britain through the Financial Conduct Authority said last week that it will, together with others as part of a task force, develop thinking and publish a discussion paper reviewing cryptocurrencies in the third quarter of this year.
The authority said cryptocurrencies do not fall under its regulatory remit but their use does. It said companies in the cryptocurrency business and crypto derivatives need to meet the FCA‘s handbook. It added that there will be stretching of resources even as it studies the financial impacts of Brexit plan.
Predictable regulation needed to help rejuvenate the market
Head of Ripple said there is a need for clearer regulation on cryptocurrencies. He said regulations are needful to help the markets mature and attract new entrants especially institutional investors. He compared the current crypto regulation situation to the early days of the internet.
“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,” said Mr. Zagone
However, he called on U.K. to follow Japan’s footsteps in cryptocurrency regulations and legitimization. On its part, Japan has a more favorable crypto regulation. Its regulations provide for customer regulation and exchanges are required to comply with anti-money laundering and terrorism funding regulations.
Mark Carney, who is Bank of England’s Governor recently said that cryptocurrencies are currently not a risk to global financial state at the present times although he also called for regulations that would deal with crime.