Ripple exec reiterates importance of tech-neutral crypto regulations
As global regulators grapple with cryptocurrency regulations, Ripple's executive reiterated the importance of adopting a technology-agnostic approach to more effective and appropriate safeguards.
At the recent Ripple Swell 2023 event, Navin Gupta, Ripple's managing director for South Asia, Middle East and North Africa, told Cointelegraph that the industry needs to be regulated based on activity rather than technology. he said:
“We don't want people to think about controlling the technology… we want regulators or anyone to be neutral to the technology. If so, it's okay [activity] Is it happening in blockchain or traditional way.
“[If] If someone is making payments, then it should be configured as a payment instrument. If something is security, it should be controlled as a security device, he added.
Purpose turns into action, and action turns into building, collaborating, and partnering. @Navinblockchain shares how #RippleSwell in Dubai brings people together to drive crypto innovation. pic.twitter.com/qS7AiWMJMV
— Ripple (@Ripple) November 9, 2023
For Gupta, the focus should be on the purpose and use of the virtual asset rather than the underlying technology, ensuring they remain relevant as blockchain technology evolves.
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The unique features and global mobility of cryptocurrencies – along with different types of tokens – have become a challenge for regulators. In response, the Group of Twenty, or G20, the International Monetary Fund and the Financial Stability Board unanimously adopted in October the crypto regulatory roadmap they presented in September. It supports global comprehensive control of crypto.
But while powers in the Middle East and North Africa region, such as the United Arab Emirates, have taken a clear stance on the new asset class, some countries, including Arab superpower Saudi Arabia, have yet to come up with clear laws, along with others, such as Egypt and Morocco. , completely block Bitcoin (BTC) and other cryptocurrencies.
According to Gupta, in addition to educating and working with regulators to better understand the industry, introducing non-speculative crypto use cases, such as crypto remittances and payments, is key to navigating the region's diverse legal landscape.
“Whenever you talk about non-speculative use cases and how crypto plays, regulators are all ears because you shouldn't say there are people speculating that they're going to double their money. [You’re] ‘How can we make it easier for citizens to get better benefits that they don't have today?' did you mean.
“Education and utility-based projects are how we get regulators when there's real utility for use,” he said.
Given the large remittance market in Africa, Ripple announced in November that it will open new payment corridors between 27 African countries and Australia, the UK and the Gulf Cooperation Council with mobile payment provider Onafric.
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