NEW YORK - Ripple's Navin Gupta, while speaking at the Ripple Swell 2023 event Today, urged for a shift in regulatory approach towards cryptocurrencies. Gupta proposed that instead of focusing on the technology behind cryptocurrencies, regulations should be based on the type of activities they are used for, such as payments or securities. This technology-neutral standpoint, he argued, would result in more adaptable and effective rules that can keep pace with the rapid evolution of blockchain technologies.
The call for a change in regulatory perspective aligns with recent developments where the Group of Twenty (G20) endorsed a roadmap laid out by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) for comprehensive global cryptocurrency oversight. Gupta highlighted the diverse responses to cryptocurrency within the Middle East and North Africa (MENA) region, where some countries have embraced digital currencies while others have imposed bans or lack clear regulations.
To address these inconsistencies, Gupta suggested that educating regulators and promoting non-speculative uses of cryptocurrencies could be beneficial. Such uses include remittances and payments which are less volatile than speculative trading. In support of this vision, Ripple has established a partnership with Onafriq to develop new crypto-based payment corridors connecting various African nations with Australia, the UK, and the Gulf Cooperation Council countries.
Gupta's advocacy for a technology-neutral regulatory framework is part of Ripple's broader strategy to foster a stable environment for digital currencies. By focusing on the activity rather than the underlying technology, Gupta believes that regulators can create guidelines that are both effective and capable of adapting to future innovations in the cryptocurrency space.
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