Graphical representation of the differences between Web 1.0, Web 2.0, and Web 3.0 and the need for tech-neutral crypto regulations.
Ripple exec reiterates need for tech-neutral crypto regulations

Technology-Neutral Approach for Cryptocurrency Rules

At the recent Ripple Swell 2023 event, Navin Gupta, managing director of South Asia, Middle East and North Africa at Ripple, stressed the importance of a technology-neutral approach for effective and adaptable guardrails as global regulators grapple with cryptocurrency rules.

“Rather than focusing on the underlying technology, the regulations should be based on the purpose and use of the virtual asset,” said Gupta. “For instance, if somebody is doing payments, then it needs to be regulated as a payment instrument. If something is a security, it needs to be regulated as a security instrument.”

Gupta believes that this technology-neutral approach will ensure that the regulations remain relevant as blockchain technology evolves.

Crypto Regulations in the Middle East and North Africa

The International Monetary Fund and the Financial Stability Board proposed a crypto regulatory roadmap in September, which was accepted unanimously by the Group of Twenty (G20) in October. This roadmap calls for comprehensive oversight of cryptocurrencies globally, due to their unique characteristics and portability.

The Middle East and North Africa region has jurisdictions such as the United Arab Emirates that are open to the new asset class, while other nations such as Saudi Arabia have yet to introduce clear rules. In addition, countries like Egypt and Morocco have completely banned Bitcoin (BTC) and other cryptocurrencies.

According to Gupta, to navigate the region’s varying legal landscapes, it is essential to educate and work with regulators to help them better understand the industry, as well as introduce non-speculative crypto use cases, such as crypto remittances and payments. He added, “Education and utility-based projects where there is real utility for usage is how we can get regulators onboard.”

In November, Ripple, taking into consideration the huge remittances market in Africa, joined forces with Onafriq, a mobile payments provider, in order to create new payment corridors between 27 African nations and Australia, the UK and the Gulf Cooperation Council.

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