Ripple's head of public policy, Susan Friedman, noted in a recent interview that the only way Ripple can operate and continue developing its business is to offer a proper legal framework for the industry. This is the only way Ripple will be able to continue growing its business.

The ideas made in this paper are informed by the policies that are in place in other nations such as Dubai, Singapore, and the EU. This is due to the fact that these regions have already made significant progress toward ensuring compliance with crypto regulatory rules.

A few proposals include making a distinction between the many forms of cryptocurrencies that were created with certain regulations in mind, coordinating the activities of the crypto industry and the public sector, and teaching legislators about cryptocurrency.

In addition, Friedman noted that they valued the fact that the United Kingdom was not the pioneer of this movement since they saw it as a benefit for themselves. She discussed the importance that she finds in a variety of frameworks, each of which opens the door to the implementation of best practices.

Main Cryptographic Architecture of the UK

The United Kingdom's House of Commons voted in October to accept revisions that will bring cryptocurrency trading inside the regulation's purview. As a result, the Financial Markets and Services Bill has evolved into the foundation of an all-encompassing legal framework for cryptocurrencies.

After the law is passed by parliament, Ripple's policy director, Andrew Whitworth, anticipates that Ripple's guidance will be included in the process of creating rules alongside the FCA. As a consequence of this, regulators in the United Kingdom will have the opportunity, once the law has been passed by legislators, to work out the particulars of the new legislation.

In a second interview, Whitworth revealed that the FCA would be granted the authority to produce preliminary content in the event that the law was approved by the parliament. However, the most important recommendation that Ripple has made is to establish a comprehensive legal framework that assigns ratings to bitcoin assets according to a variety of risk profiles.

Whitworth explained that the authorities do not consider cryptocurrencies to be a single entity for the purposes of the regulatory framework. They focus on a more comprehensive element as a result of the fact that it incorporates a variety of business models, technologies, and blockchains.

He went on to say that a regulatory framework for cryptocurrencies should comprehend the different risk profiles and give multiple regulatory remedies for those risk profiles. He went on to say that regulators are aware of this issue in regards to traditional regulatory systems.

Nonetheless, it is commonly forgotten about during talks about the policies governing cryptocurrencies.