Ripple outlines how regulatory clarity fosters innovation 💸🔐🔥
Regulatory clarity fuels innovation
Ripple, a blockchain payments protocol, and TRM Labs, a blockchain intelligence company, held an open discussion on the need for regulatory certainty in digital assets. Among the key participants were representatives from the International Organization of Securities Commission (IOSCO) and the Monetary Authority of Singapore (MAS). The discussion was on regulatory innovation as an essential tool for promoting responsible adoption.
The borderless nature of decentralized finance faces one challenge: regulatory arbitrage. Lack of uniform regulations from different jurisdictions can create openings. The roundtable emphasized the need for a worldwide consortium and more data to be shared among regulatory bodies. This corresponds with the Commodity Futures Trading Commission’s (CFTC) focus on data as a critical element to reduce risks and achieve financial stability
One major idea echoed in the discussion is “compliance by design.” The company says that integrating compliance requirements within defi protocols via smart contracts would simplify regulatory procedures. This strategy seeks to lower regulatory constraints, minimize costs, and boost the quality of financial products for end-users.
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Amidst these discussions, Ripple faced a setback as Chris Larsen’s personal wallet fell victim to a substantial hack recently. Binance CEO Richard Teng revealed the swift action taken to freeze the hacker’s address, showcasing collaboration between industry players.
Larsen clarified that the breach targeted his personal accounts, not Ripple’s infrastructure or XRP token.
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