Cryptocurrencies in general have been labeled as money laundering conduits and facilitators of fraud and terrorist financing. This is all thanks to the way they are inherently designed. While some are anonymous, most are pseudonymous, free of central authority and most importantly thriving in an environment of self-regulation with no specific point of control. To keep it simple, cryptocurrencies are meant to be unregulated and communal with every node participating in issuing and validating transactions.
Uniquely though, Ripple the company took a different approach. As a software company keen on providing ample infrastructure for banks and companies willing to leverage on their cost cutting technologies as xCurrent and xRapid, Ripple have been in the forefront advocating for blockchain supporting regulations. As a matter of fact, they were amongst the very first blockchain start up to acquire the Bit License in New York.
US is Falling Behind
It’s in this vein that in a recent interview with Fox Business, Cory Johnson who is the chief marketing strategist is literally “thrilled” by the renewed efforts by different government officials to implement streamlining regulation within this developing sector.
In his view, this could work for Ripple and perhaps fill the grey space left by non-regulation now that the US is falling behind and experiencing difficulties in devising proper rules pertaining cryptocurrencies. Furthermore, Cory said regulations would further help enforce accountability of blockchain startups and even ICOs while ensuring investors are safeguarded against fraud.
“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.”
Regulation Spurs Institutional Investment
Additionally, Cory pointed out that proper government oversight would be the much need impetus for institutions to flock in to cryptocurrencies. High tier investor often regard cryptos as volatile and open for manipulation not fit for investment.
Being a global phenomenon, the only way for effective regulation is when different government bodies join hand to weed out negative elements taking advantage of lack of regulation for their own benefits. This way, the crypto ship would have a better label and attractive for investment.
However, as it has been the case, it is a delicate balance since too much regulation would choke innovation and even perhaps centralize a system that is designed for control by specific entities.