Ripple proposed four targeted regulatory actions to support the UK's leadership in digital asset innovation.
The UK government is progressing with crypto regulations, including stablecoin rules and a pilot for a digital government bond.
Ripple emphasized global rule alignment and swift regulatory action to attract investment and avoid conflicting obligations.
As digital assets continue to gain traction across global financial systems, Ripple has issued a set of detailed regulatory recommendations intended to boost the United Kingdom’s position in the crypto industry. The proposals, revealed during the London Policy Summit on June 18, aim to reshape the UK’s approach to digital finance and accelerate its influence on the international stage.
UK Moves Toward Clearer Digital Asset Regulation
According to an X post, Ripple's proposals follow a series of steps taken by the UK government to build a more defined crypto-asset framework. In April, Chancellor Rachel Reeves outlined a strategy focusing on digital assets, followed by HM Treasury’s draft rules and the Financial Conduct Authority’s consultations. The consultations cover important areas including stablecoins, custody arrangements, and prudential regulation.
https://twitter.com/Ripple/status/1935441396871172361
These efforts signal an increasing urgency in the UK’s effort to regulate digital finance. Ripple released a whitepaper during the summit, proposing four regulatory actions to support investment and development. The first calls for swift finalization of a regulatory framework that can attract global investors and technology providers. Ripple noted the need for urgency to ensure the UK does not fall behind in innovation.
The second recommendation focuses on aligning UK rules with international standards. This step aims to avoid conflicts that could discourage global crypto firms from operating in the UK. Ripple’s third recommendation centers on the treatment of stablecoins. The company urged regulators to allow overseas-issued stablecoins to be used within the UK without requiring local issuance.
This move could lower barriers for international firms entering the market. The fourth proposal targets obstacles related to legal, tax, and regulatory issues in tokenisation. Ripple identified tokenisation as a key growth area and called for a clear strategy to help the UK lead in this space.
Progress in Infrastructure and Pilot Programs
Government-backed efforts are already underway to expand the country’s digital finance capabilities. The UK has added new participants to its Digital Securities Sandbox, which allows firms to test blockchain-based services under regulatory supervision.
In addition, a pilot for a digital version of a UK government bond, known as DIGIT, has launched. These developments are seen as foundational steps in building a digital financial ecosystem. Ripple has noted that over 90% of leading financial institutions had participated in crypto-assets by 2024.
Ripple highlighted the need to regulate quickly to cope with demand and the development of technology in the world. Summit participants talked of the implications of blockchain on payments, transparency and access to finance. The UK has found itself in a crucial stage as regulations are being designed that would help define its financial architecture of the future.
