A Ripple executive has re-emphasized the need to take a technology-neutral approach for more effective and adaptable guardrails as global regulators grapple with cryptocurrency rules.
At the recent Ripple Swell 2023 event, Navin Gupta, managing director of Ripple’s South Asia, Middle East and North Africa (MENA), told Cointelegraph that the industry should be regulated based on activity and not the technology used. He said:
“We don’t want people to think about regulating technology… We want regulators, or anyone else, to be technologically neutral. “It doesn’t matter if the (activity) happens on the blockchain or in a traditional way.”
“(If) someone makes payments, then it is necessary to regulate it as a payment instrument. If something is a value, it is necessary to regulate it as an instrument of value,” he added.
Intention becomes action and action becomes construction, collaboration and partnerships. @Navinblockchain share how #RippleSwell in Dubai brings people together to drive crypto innovation. pic.twitter.com/qS7AiWMJMV
– Ripple (@Ripple) November 9, 2023
For Gupta, the focus should be on the purpose and use of the virtual asset rather than the underlying technology to create flexible regulations, ensuring they remain relevant as blockchain technology evolves.
Related: Brad Garlinghouse attacks the maximalists: “It will be a multi-chain world”
The unique characteristics and global portability of cryptocurrencies (with their different types of tokens) have proven challenging for regulators. In response, the Group of Twenty last month unanimously accepted a crypto regulatory roadmap proposed by the International Monetary Fund and the Financial Stability Board in September that advocates for comprehensive oversight of cryptocurrencies globally.
But while the MENA region has jurisdictions like the United Arab Emirates that have taken an open stance toward the new asset class, some nations, including Arab superpower Saudi Arabia, have yet to introduce clear rules, and some, like Egypt and Morocco , completely ban bitcoin (btc) and other cryptocurrencies.
According to Gupta, in addition to educating and working with regulators to help them better understand the industry, introducing non-speculative cryptocurrency use cases, such as remittances and crypto payments, is key to navigating the region’s diverse legal landscapes.
“Whenever you talk about non-speculative use cases and how cryptocurrencies can play a role, regulators are all ears because you are not going to say that people are speculating to double their money. (You’re going to) say, ‘How can we make it easier for citizens to get a better benefit that they don’t get today?’”
“Education and utility-based projects where there is real utility for their use is how we can engage regulators,” he added.
Given the large remittance market in Africa, Ripple announced in November a partnership with mobile payments provider Onafriq that will open new payment corridors between 27 African countries and Australia, the United Kingdom and the Gulf Cooperation Council.
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