Ripple, the third-largest digital currency in the world, called on British regulators to follow the example of Japan and to introduce new rules in order to put an end to the days of the “wild West” on the cryptocurrency market.
The Director of the division of relations with state agencies Ripple Ryan Paddock, called on UK regulators to find a balance between “controlling risks and encouraging innovation”. For legislators, he outlined three fundamental factors aimed at regulation: consumer protection, fighting money laundering and financial stability.
“Now the cryptocurrency needs more clarity and rules, and we get more confidence. It’s a good time to change the approach “wait and see what happens”, once accepted by the regulators — said Mr. Paddock, comparing the regulatory environment for cryptocurrencies with the same faced by the Internet in its early days.
Last year, Japan revised rules for cryptocurrencies, introducing legislation to protect consumers, forcing cryptocurrency exchanges to comply with the rules of combating money laundering. In the UK, the process of making changes in the regulations are actually standing still.
Last month the Chancellor of the exchequer Philip Hammond announced the creation of a new working group that will “manage the risks associated with crypto-assets”, and to protect investors. The group included representatives of the Treasury, the Bank of England and the office for financial regulation and supervision.
Boe Governor mark Carney has warned that Bitcoin and other cryptocurrencies to face regulatory infringement, for the reason that you have all the “hallmarks of a bubble”.
Earlier this year news from around the world about tightening regulation shocked the cryptocurrency market. The statements of the authorities of many States of intent to control cryptocurrency created in the community panic and unleashed courses. But Mr. Paddock argued and continues to argue that regulation is needed to help the market to Mature and attract new participants:
“Regulation can create barriers on the highway that allow you to enter new participants, in particular institutional investors”.
Analysts from Barclays at all recently compared Bitcoin with the “infectious disease”.