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Ripple Expresses Excitement Over the Involvement of Regulators in Crypto

Ripple’s Chief Market Strategist, Cory John, recently expressed his excitement regarding the incorporation of regulatory bodies in the crypto world in order to make it more secure as a platform for investors.

As the cryptocurrency world continues to expand on a global scale, the negative factors associated with it also gain attention. More and more cases of fraudulent and manipulative scams, regarding cryptocurrency have surfaced in the recent past, keeping investors on a back foot regarding the situation. Concerning serious issue of the investors protection from scams and fraudulent activities propagating across crypto, the need for regulating is inevitable. Cory stated that:

We’ve seen what happens when there aren’t investor protections. We’ve seen investors lose so much money, and we’ve seen it in the world of crypto. We’ve seen some real bad actors involved, so we’re thrilled that regulators are getting involved.

The issue of whether a regulatory framework should be implemented on the cryptocurrency has been the talk of the town since the beginning. While a certain class within the cryptocurrency world considers regulations to be important for long-term development of this market as more and more investors will be willing to enter it. A specific group of firms has also expressed its dissent regarding the implementation of such a framework. Ripple’s executive suggested that Ripple has always considered the need for such a framework as necessary in order to protect the market from illegal activities on a long-term basis.

This approach also comes in naturally, as the architect of BitLicense, Ben Lawsky, is also a part of Ripple’s board of directors committee. BitLicense is a digital currency regulatory framework which is accepted by large number of established bitcoin firms, but is rejected by most of the smaller and developing bitcoin firms owing to its strictness in policies as the need for a regulating framework exposes the entire system to the threats of cyberattacks leading to a possible loss of customer information. In the official media announcement, Ben Lawsky stated that:

Ripple is the leading enterprise blockchain company in the world today and is one that truly understands the importance of regulation-enabled innovation. The company and its leadership are passionate about making our global financial system more efficient, more secure and more fair.

Ripple, being a multinational operator, has also been contacting different regulating bodies across the world in order to standardize its system of regulation in all offices and to protect investors from possible illegal and manipulative acts.

The need for regulations on this market is ever-growing, regarding the system of cryptocurrency in the U.S., the Chairman of CFTC, Commodity Futures Trading Commission, J. Christopher Giancarlo stated while responding the a question posed by Rep.Stacey Plaskett (D-VI):

We’re falling behind. The Bank of England has announced a new blockchain compliant payment settlement system. We’re 4 years behind. We need to test and understand it and know how to work it as a regulator before coming to Congress. …Using subpoenas to get information from blockchain finance industry I think is the wrong way to go about it. I think cooperation is the way forward.

Other than Ripple, we have also seen various other organizations like NASDAQ inclined towards the need of a regulatory framework on the cryptocurrency world. In a more regulated and controlled framework, NASDAQ has also expressed its intent of developing a digital currency exchange. The Chief Executive Officer of NASDAQ stated that:

I believe that digital currencies will continue to persist, it’s just a matter of how long it will take for that space to mature. Once you look at it and say, ‘ do we want to provide a regulated market for this?’, certainly, Nasdaq would consider it.

Cryptocurrency is a relatively nascent market, and owing to its fraudulent and manipulative activities, it has not been received as welcoming by most of the major institutions. The U.S. Securities and Exchange Commission also suggested this world to be insecure and unsafe for investors at large. In a recent disapproval of the proposal made by Bats BZX concerning the establishment a bitcoin ETF, the SEC stated regarding the authenticity of the market that:

Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally has utility or value as an innovation or an investment. Rather, the Commission is disapproving this proposed rule change because as discussed in detail below, BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.

As seen from these statements, the institutions are are not willing to invest in the market of cryptocurrency as of yet, owing to all the loopholes present in its infrastructure regarding the aspect of security. But as more and more regulations are imposed on the security framework, investors will be less prone to scams and attacks that have made the crypto world prone to a lot of vulnerabilities.

Ripple sees the implementation of regulations regarding the crypto market as a positive step, because more and more investors will now be interested in the market, consequently resulting in the success of both Ripple and the crypto market as whole. Besides Ripple, other major organizations are also stepping in the game of implementing a regulatory framework for cryptocurrencies and it is likely that more support will come in the near future concerning the establishment of a regulatory framework.

Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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