Cryptocurrencies in general have been labeled as money laundering practices and fraud facilitators and terrorist financing. This is all thanks to the way they are intrinsically designed. While some are anonymous, most are pseudonymous, lacking central authority and, above all, thrive in a self-regulatory environment without a specific control point. To simplify, cryptocurrencies must be unregulated and common to all nodes participating in the issuance and to the validation of transactions.
Uniquely, however, Ripple has taken a different approach. As a software company willing to provide extensive infrastructure for banks and businesses willing to leverage their cost-cutting technologies such as xCurrent and xRapid, Ripple has been at the forefront of defending the blockchain's regulatory framework. In fact, they were among the first to blockchain to buy the Bit License in New York.
US is Falling Behind
It is in this vein that in a recent interview with Fox Business Cory Johnson, who is the chief marketing strategist , is literally "electrified" by the renewed efforts made by several government officials to implement simplified regulation within this developing sector.
In his view, this could work for Ripple and perhaps fill the gray space left by non-regulation now that the US is falling behind and experiencing difficulties in elaborating appropriate rules regarding cryptocurrencies. In addition, Cory said the regulations would further help strengthen the responsibility of blockchain startups and even ICOs while ensuring that investors are safeguarded against fraud.
"We have seen what happens when there are no protections for investors, we have seen investors lose so much money and we have seen in the world of cryptography, we have seen some really bad actors involved, so we are Enthusiastic that regulators are involved. "
The regulation encourages institutional investments
Furthermore, Cory stressed that proper government supervision would be the much needed impetus for institutions to run in cryptocurrencies. High-level investors often consider the volatile cryptos open to manipulation that is unsuitable for investments.
Being a global phenomenon, the only way for effective regulation is when several government agencies come together to eliminate the negative elements by exploiting the lack of regulation for their benefits. In this way, the crypt ship would have a better and attractive label for investments.
However, as has been the case, it is a delicate balance because too much regulation could stifle innovation and perhaps even centralize a system designed to control by specific entities.