- 17th April 2018
- Posted by: Lendo
- Category: Cryptocurrency
There are three good reasons to regulate the cryptocurrency markets according to Ryan Zagone of Ripple: consumer protection, anti-money laundering, and financial stability. This is what he has told the British government, according to a report in The Telegraph.
Ripple is the third largest digital currency with its XRP token and a platform that aims to make bank transactions faster and cheaper. Its system has already been adopted by some of the world’s leading banks, with the Santander group, which operates in the UK and Spain, being one of the latest to add its name to the list of clients.
Ryan Zagone is Ripple’s head of regulatory regulations and he is urging UK regulatory bodies to follow Japan’s lead in setting rules for the crypto world and end what he calls the “Wild West” days of the cryptocurrency market.
This is an issue that Lendo’s CEO David Honeyman has spoken about to several journalists, pointing out that regulation is not only inevitable, but is also desirable. Lendo’s view concurs with that of Ripple, in that the market needs regulation to remove the volatility that acts as a barrier to adoption by both institutional investors and the consumer.
Zagone told The Telegraph, “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.” Like some other commentators in recent days, he also compared the cryptocurrency market to the early days of the Internet.
The UK has launched a taskforce to investigate and manage the risks around crypto assets, but hasn’t caught up with Japan, which was fast off the mark putting legislation in place with regard to crypto exchanges.
The crackdowns we have witnessed this year are more of a knee-jerk, negative reaction to the blockchain markets. Zagone is arguing that what is really needed is a measured regulatory approach that will help the market mature and attract more new investors from the conventional markets.