Navin Gupta, the Managing Director of South Asia, Middle East, and North Africa at Ripple, a U.S. blockchain and payments company, has stressed the importance of adopting an activity-based approach to cryptocurrency regulation.
In an interview with Cointelegraph during the Ripple Swell 2023 event in Dubai, Gupta highlighted the need for regulating the crypto industry in a technology-neutral manner, focusing on the activities conducted rather than the specific technologies involved.
“We want regulators, or anybody for that matter, to be technology-neutral. It doesn’t matter if the [activity] is happening in blockchain or traditionally,” Gupta stated.
According to Gupta, payment activities should be regulated as payment instruments, and if an asset is determined to be a security, it should be subject to appropriate regulations.
Ripple has consistently asserted that its token XRP is not a security, and a recent court ruling supported this position, stating that the token is “not in and of itself” a security.
Crypto is challenging to regulate
The distinctive and intricate nature of cryptocurrencies, coupled with the multitude of token varieties, presents challenges for regulators worldwide.
The G20 recently endorsed a regulatory roadmap for cryptocurrencies, advocating for comprehensive global oversight. However, in the Middle East and North Africa (MENA) region, there are diverse approaches, with some countries openly embracing cryptocurrencies, while others are yet to establish clear regulatory frameworks. The regulatory landscape for cryptocurrencies varies widely across different jurisdictions, reflecting the ongoing global effort to adapt existing regulatory frameworks to the unique characteristics of the crypto space.
Promote ‘non-speculative use cases’
Navin Gupta, in his interview, underscored the significance of educating regulators and highlighting non-speculative use cases for cryptocurrencies, such as remittances and payments, to navigate the legal complexities in the Middle East and North Africa (MENA) region.
According to Gupta, concentrating on real utility and “non-speculative use cases” is vital for gaining regulatory support. He emphasized that education and utility-focused projects, where there is practical utility for usage, are key elements to bring regulators on board with the crypto industry.
This approach aligns with the broader industry push to showcase the tangible benefits and applications of blockchain and cryptocurrencies beyond speculative trading, aiming to foster understanding and support from regulatory authorities.