Ripple price: CEO says you should not FEAR crypto regulation | City & Business | Finance
Ripple and other cryptocurrencies such as bitcoin were the hot topics of conversation among bankers and politicians at the Davos World Economic Forum in January. Yet the talk of regulation led to a fall in the price of cryptocurrencies.
But Ripple CEO Brad Garlinghouse insisted there is a lot of “misinformation” surrounding cryptocurrency regulation.
Speaking on Bloomberg News, Mr Garlinghouse said: “I’ve kind of jokingly suggested when people talk about regulatory uncertainty, it’s often people don’t like the regulation. They’re not actually regulatory uncertainty.
“If you think about the XRP transaction from one regulated financial institution, a bank or payment provider – they’re doing what’s called a KYC check which references ‘know your customer’.
“There is a global regulatory framework around KYC. That’s at both endpoints of an XRP transaction, into and out of.
“So I think the regulatory certainty is actually much better than people think than people realise. It’s just educating banks, regulators about how it actually works.”
Experts have previously linked the decline in crypto prices to increased pressure from global regulators on cryptocurrency exchanges.
He said: “Regulatory news coming out of US and Japan may also have impacted cryptocurrencies again, but shouldn’t be cause for alarm. Cryptocurrencies are still in the early stages of development.
“As the market grows, regulatory scrutiny is to be expected. Appropriate regulation should ultimately help promote best practice and afford protection to the consumer.”
Bank of England boss Mark Carney said digital currencies such as bitcoin are “not efficient” and do not do what they are supposed to do as he called for a crackdown on cryptocurrencies.
In his speech on the future of bitcoin, Mr Carney said: “The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system.”
The Bank of England Governor said it is a “privilege” to be part of the financial system and “responsibilities come with those privileges”.
Mr Carney added: “The best of the cryptocurrencies, I would suggest, will gravitate to the best of the exchanges if they were regulated. And others will fall by the wayside.
“In the end, it is not just about market regulation, part of this is about any money laundering, terrorism financing, other elicit activities.”
Ripple price for 10:00am (GMT) on Tuesday is $0.7974 (GMT), according to CoinGecko.