This Country Is Falling Behind In The Crypto Race

Ripple Raises Concerns Over UK’s Slow Crypto Regulation Progress

Ripple, the blockchain-based payments firm behind XRP, is voicing its frustrations over the UK’s sluggish approach to crypto regulation. Cassie Craddock, Ripple’s Managing Director for the UK and Europe, recently highlighted that British banks are hesitant to engage with digital assets due to the uncertainty surrounding crypto laws.

During a policy summit in London, Craddock emphasized that the lack of clarity in regulations is making it challenging for Ripple to access basic banking services in the UK. Major banks in the country are still keeping their distance from Ripple’s services, citing regulatory ambiguity as a primary reason.

Craddock recalled instances from 2017 when financial institutions would listen to Ripple’s proposals but never follow up, showcasing the ongoing hesitancy in the UK banking sector. While the European Union has made progress in embracing digital asset services under the new Markets in Crypto-Assets (MiCA) regulation, the UK lags behind.

Despite efforts by the new Labour government under Prime Minister Keir Starmer to work on a regulatory framework, Ripple believes that the pace of progress is too slow. Craddock emphasized the need for clarity sooner rather than later, especially to benefit from the pro-crypto stance seen in the US.

In contrast to the UK, Ripple’s expansion in Europe has accelerated thanks to clearer regulations across the bloc. Banks on the continent are responding to client demand for digital asset services, leading them to engage with platforms like Ripple. However, UK institutions are holding back due to a lack of confidence in the regulatory environment.

While large banks remain hesitant, Ripple is witnessing more interest from smaller fintechs and startups in the UK seeking to leverage its cross-border payment tools. The company’s CEO, Brad Garlinghouse, has revealed plans to focus 75% of new roles in the US to align with the more favorable policy environment there. Despite this shift, Ripple continues to invest in its UK and European operations.

Ripple, along with several other firms, is awaiting regulatory approval from the UK’s Financial Conduct Authority (FCA). The FCA has faced criticism for approving only 14% of the 351 crypto firms that have applied for registration since 2020. The regulatory body maintains that its low approval rate is a result of strict adherence to anti-money laundering standards, rather than resistance to innovation.

FCA Chief Executive Nikhil Rathi emphasized that the UK aims to be an attractive destination for innovation, dispelling notions of being anti-innovation. As Ripple navigates the regulatory landscape in the UK, the company remains committed to its operations in the region while also focusing on growth in the US market.