Yesterday’s news revolving around the U.S. Securities and Exchange Commission’s enforcement action against Kraken has once again flushed great uncertainty into the crypto market, but Ripple CEO Brad Garlinghouse has pointed to the positive developments around the world.
Garlinghouse cited a total of five encouraging crypto regulatory news stories worldwide – all in markets where Ripple has a strong presence.
“Stepping back for a moment from what’s happening in the US – just in the last few weeks, the number of positive (or at least headed in the direction of CLARITY) global regulatory developments is energizing!”, the CEO said and cited Dubai as the first example.
Dubai has always been a technology-driven country and has just published a comprehensive new set of regulations for crypto market participants, covering compliance standards, advertising, emissions and more. Ripple landed its first On-Demand Liquidity (ODL) partner in the country back in October 2021 with international financial services firm Pyypl.
In addition, National Bank of Fujairah announced a collaboration with Ripple for cross-border money transfers in March 2020. The partnership was part of a broader initiative to apply the latest technologies to the bank’s operations.
Garlinghouse cites Australia as the second country with regulatory progress, where the Department of Finance is looking to reform the licensing and custody of cryptocurrencies and strengthen consumer protection. A consultation on token mapping was recently released, with the Treasury seeking public input before updating existing frameworks.
With Novatti and DeeMoney, the company has long standing partners that maintain payment corridors into the country. In October 2021, National Australia Bank (NAB) reported that it had formed an alliance with Israeli bank Leumi and Canadian Imperial Bank of Commerce (CIBC).
“We’re excited to be working with CIBC and have already partnered with them in using Ripple’s blockchain technology to complete international payments transfers between our banks as a proof of concept,” the announcement reads.
Ripple CEO Energized About Global Regulatory Advances
Garlinghouse is also pleased about regulatory progress in the UK, where the new UK HM Treasury consultation reflects the government’s intention to provide an appropriate, clear framework that allows businesses to innovate while maintaining financial stability.
As Bitcoinist reported, the Bank of England recently published a consultation paper on its CBDC project, where Ripple also finds a mention.
Meanwhile, South Korea is also making regulatory strides. The South Korean Financial Services Commission has published guidelines defining what is considered a security token and what is considered a payment token, and how they will be regulated separately.
In SBI Ripple Asia, Garlinghouse’s company has one of its key global partners in the region. The joint venture between the US fintech and SBI Holdings provides RippleNet to financial institutions and money transfer service providers in Japan, South Korea and certain Southeast Asian countries.
Finally, Garlinghouse cites Brazil, where it is rumored that the country is developing a CBDC in cooperation with Ripple.
“The list goes on (Brazil’s new legislative framework etc) Note the commonalities – these regulators are providing leadership and doing the work that we are desperately missing in the US – unsurprisingly, this is where companies like Ripple are growing!” the Ripple CEO said.
At press time, XRP was at $0.3854, which means the price has fallen 2% in the last 24 hours.