Ripple publishes regulatory whitepaper for the UK crypto sector

According to coinpedia.org, Ripple wants to work with UK regulators in order to expand the crypto sector and transform the UK into a global crypto asset centre. The whitepaper was released ahead of expected revisions to the UK’s Financial Markets and Services Bill, which aims to define the nation’s crypto regulation framework, and it explains how a potential crypto asset sector will benefit the UK economically by closing the gap between financial and commercial entities in a more efficient way. 

One of the goals is to pave the way for cheaper, faster, and more secure payments for small and midsize retail users and crypto firms, especially when it comes to cross-border payments. 

• Ripple has also highlighted three key aspects that the UK should take into consideration in order to become a key player in the crypto industry. 
• Widespread public education and well-maintained relations with policymakers can help create a balanced crypto future for the UK. 
• Well-established coordination between regulatory bodies and the government can help bring an impactful transition for the crypto sector by supporting the development of a Central Bank Digital Currency (CBDC). 

The whitepaper suggests looking at other jurisdictions that have already established regulatory frameworks, including Dubai and Singapore. Framing a proper crypto regulatory infrastructure can help investors identify risks and differences between different sectors of the crypto space. This framework would eventually allow investors to build trust with the community while working to further develop the crypto landscape. 

The company’s whitepaper also touched on crypto’s environmental impact. It explained that each blockchain has a different environmental impact that is determined by how it mines tokens and validates the transaction. While drawing a comparison between proof-of-stake (PoS) and proof-of-work (PoW) blockchains, Ripple highlighted that its XRP token uses a proof-of-consensus (PoC) methodology that is much more environmentally friendly.

There’s an ongoing battle between Ripple and the SEC

In December 2020, the US Securities and Exchange Commission (SEC) has sued Ripple for raising more than USD 1.3 billion through an unregistered securities offering. The suit is based on whether XRP is a security or a currency, and the SEC argues that it is a security, and thus Ripple didn’t provide its investors with the proper information they needed to assess any potential risk.  

The legal battle between Ripple and the SEC could end in 2023 according to Ripple’s CEO cited by beincrypto.com. According to the same source, the SEC could not demonstrate that Ripple and XRP investors knew or should have known about the token’s alleged status as a security.