Blockchain company Ripple believes the UK can become a leader in the crypto sector. Company executives shared this view at the recently organized UK Digital Assets Summit, in collaboration with Innovation Finance and the UK Blockchain Technology Centre.
According to Mathew Osborne, policy director at Ripple Europe, who wrote about the event, the UK already has the advantage of being one of the global financial services centres with expertise in a variety of fields. Therefore, the state only enacts appropriate regulations.
Osborne noted that other jurisdictions, such as the European Union, Hong Kong and Singapore, have already defeated the UK in regulating the crypto industry. However, he believes that the UK has a second advantage and can learn from these jurisdictions.
He said:
“The UK has a “second mover advantage” as it allows us to introduce regulatory regimes that can learn from the experiences of other jurisdictions and support the benefits of digital assets and mitigate risk. ”
These comments reflect the views of the panelists at the summit. The Summit believes that the UK needs to move quickly with crypto industry regulations as clarity remains important for participants. They pointed out that such clarity of regulations could bring several benefits to the UK, including faster and more efficient settlements for local and cross-border transactions, and more capital inflows into the country, 24/7.
Fundamentally, they believe that if the UK has clearer rules on digital assets, it could become a global crypto hub where consumers enjoy more protection as the standards for companies in the sector improve.
Panelists lament slow cryptography regulations in the UK
The call for rules that will enable the UK crypto industry is nothing new. Although the Financial Conduct Authority already has several rules, industry participants believe that more regulatory clarity is needed to encourage recruitment.
The report said:
“The panelists reflect that progress so far has been rather fragmented and requires a bold, ambitious and inclusive approach.”
Some of these complaints also include the FCA’s low approval rate for Crypto licenses. Regulators have given approvals to Coinbase, PayPal BlackRock and Galaxy, but the 14% approval rate means that several companies, including Ripple itself, will stay without a license.
Naturally, Ripple complained that domestic banks did not want to cooperate with it because there is no regulatory framework. According to Ripple Europe and UK Managing Director Cassie Craddock, large banks have yet to embrace Ripple due to regulatory uncertainty.
Ripple wants rules that allow stub coins and tokenization
Meanwhile, Summit panelists said they have identified steady and tokenization as two key products essential to the UK’s growth as a hub for digital assets. He said the UK needs legislation to create an environment that enables these products and allows for stable use, including those not issued domestically.
Stablecoin is currently a $200 billion sector, with a high growth potential and has many regulatory interests around the world. The UK already has a roadmap for crypto regulations, but there is a cooperative debate with Stablecoins set up in the first half of 2025, but Ripple executives want the FCA to track it quickly.
Furthermore, he referred to the possibility of tokenization to transform the market, calling on the UK government to move quickly to enable tokenization as the country can obtain from it. He noted that all it takes is to remove all the barriers to it.
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