Could the UK finally begin realising what is surely its abundant potential in the crypto space? There are hopes of that in light of the rise of former Chancellor – and crypto fan – Rishi Sunak to the top job in British politics, and now, one of the leading crypto firms has outlined how it could be made a reality.
What is contained within the policy paper?
Ripple, which is known for its enterprise blockchain and crypto solutions, has published a policy paper entitled Block by Block: Building Up the UK as a Global Cryptoasset Centre.
The paper sets out a framework for regulation that could support the UK’s journey to becoming one of the world’s crypto hubs through the cultivation of innovation and growth, encouraging investment, and ensuring the public and policymakers are well-informed on the sector’s benefits and risks.
Given the UK’s status as one of the biggest international financial centres, the country would seem advantageously positioned to tap into the next wave of global financial innovation through the development of its cryptoasset sector.
Furthermore, the new Prime Minister is on record as having voiced his support for crypto and blockchain solutions, having declared in April – when he was still Chancellor – that it was his ambition to “make the UK a global hub for cryptoasset technology”.
Those combined factors indicate the UK could be on the verge of delivering a regulatory framework that is transparent, principled and proportionate, in what would be great news for the local ecosystem for cryptoassets.
“The UK cannot afford to fall behind”
EMEA policy director at Ripple, Andrew Whitworth, commented: “Heading into the summer, the UK’s crypto ambitions were ready to be realised, and after a period of instability, it’s time to get that train back on the rails and move forwards.
“We’ve seen other jurisdictions take progressive steps to offer regulatory clarity for their local cryptoasset industries, and the UK cannot afford to fall behind. Our policy paper speaks directly to UK regulators, and offers guidance on how they can collaborate with the private sector and build the UK as a global crypto centre.”
The Ripple paper considers the UK’s regulatory approach and compares it to that of progressive administrations ranging from Singapore and Dubai to the European Union (EU).
Various policy ambitions are set out by the paper, including the need to develop a clear and differentiated regulatory framework that treats the cryptoasset space’s different actors according to their own risk profiles.
In addition, Ripple calls in the paper for investment in resources and improved coordination between regulatory bodies and the private sector, to help ensure efficient and timely responses to industry developments and innovation.
Finally, the crypto giant said there needed to be a commitment to public education to help develop policyholders’ and the wider public’s understanding of the crypto industry, including both its advantages and risks.
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