XRP And Regulation: XRPL Labs Plans To “Unburden” Crypto From Regulators
Ripple and XRP are in the spotlight these days for various achievements involving partnerships and adoption.
The two entities have been also mentioned as important examples of innovation and development in the crypto space.
Now, Wietse Wind, the founder of Ripple-backed XRPL Labs, just said that he’s working on a solution to help crypto entitites in Europe, deal with the issues regarding regulatory compliance.
Regulation can impact crypto innovation
In a blog post, Wind said that even if he’s a supporter of regulating digital assets, he is also concerned about how the upcoming European and Dutch laws could impact crypto innovation.
It’s been also revealed that the Dutch central bank said back in September that it would begin regulating crypto companies on January 10.
Daily Hodl notes that Wind said that these new regulations would require “registration, supervision, audits, and regular collection of know-your-customer (KYC) information, as well as reporting suspicious transactions to Dutch authorities.”
Wind said the following:
“I am sure regulation is a good thing to a growing and maturing ecosystem, making its way to more and more use cases and users. However: think about all those new and innovative use cases.”
He continued and said that if we “imagine all small teams of developers, crypto enthusiasts, innovators having to get contracts with KYC providers, [Anti-money laundering] data providers, defining risk profiles, scanning transactions, AML related interactions with customers… Think about the costs involved in starting even the smallest crypto project.”
A potential solution
Wind’s solution is to create a crypto regulatory compliance company that could handle all the tasks for crypto ventures, both small and large.
He also said that he already gathered a small team of innovators, consultants, developers, and experts, and he also said that this venture would be focused on offering services for EU regulations first.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.