Ripple, a leader in blockchain solutions, has released a four-point plan that the UK can follow to accelerate its crypto growth. According to Ripple, the UK has what it takes to become a world leader in digital assets, but it needs to act fast.
The UK Intensify Push for Crypto Regulation
At the London Policy Summit organized by Ripple in collaboration with the UK Centre for Blockchain Technology and Innovate Finance, government officials and experts analyzed the latest government initiatives that made the UK a global leader in digital assets.
The UK has always wanted to become a global crypto hub. However, it is not until recently that government initiatives have indicated steps in that direction.
The recent government has drafted legislation from the HM Treasury and has had consultations with the Financial Conduct Authority (FCA) on crucial areas like stablecoins and custody.
Ripple commended these moves as the UK accelerates efforts to create a defined crypto-asset regulatory framework. Ripple also noted new participants joining the Digital Securities Sandbox and the launch of a pilot for a digital UK government bond, DIGIT.
What Should Be the UK’s Priorities, Ripple
According to Ripple, the opportunity for the UK to become a global crypto leader in crypto is huge. However, its regulatory framework has to be designed correctly.
At the end of the summit, Ripple published a paper, stating its 4-point plan to establish the UK as a global crypto hub. The four-point plan includes:
- Fast-Track a Growth-Driven Regulatory Framework
Ripple emphasizes that pioneers in crypto can benefit considerably and the UK has to move decisively to utilize such an opportunity. As such, it urges the UK to accelerate the completion of its crypto regulatory framework.
- An Open and International Approach
Rather than draft its regulatory framework independently, Ripple urges the UK to follow but improve the approach of other jurisdictions. This would reduce inconsistent requirements on international companies operating in more than one jurisdiction, and business compliance would be more fun because there is no escape to arbitrage in the regulatory environment.
- Push Stablecoin Adoption
Ripple urges the UK to move faster with stablecoin adoption as they will be “critical to the digital economy.” To encourage healthy competition, the UK has suggested that non-UK-issued stablecoins should be allowed to circulate domestically without imposing any extra hindrances. The paper says Ripple supports this move.
- Tackle Tokenization
While the UK has had a good start to tokenization, Ripple says regulators need to take a bold and ambitious approach. Ripple has confidence that the UK can be a global leader in tokenization with a market size that is expected to reach $10 trillion in 2030, provided the legal, regulatory and tax challenges of the industry are overcome.
A Closing Timeline for the UK
The guidelines seek to make crypto regulations clear in the UK, attract huge investments, assist in developing innovations, and ensure that the UK does not miss out on crypto’s growing global adoption trend.
Even though the report did not specify the deadlines, the tone of the paper indicates that time is running out for the UK. Already, we’ve seen moves in other countries, including the US, recently passing the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” to foster the adoption of stablecoins.
