Ripple wants to protect companies against hard regulation in the EU
Ripple has been involved for a long time in the United States of America, to find a single legal regulatory framework. Wietse Wind would also like to support businesses in Europe.
Wietse Wind, the founder of Ripple-backed XRPL Labs, says that he is working on a solution to support Crypto in Europe in compliance with regulatory requirements. In a blog post, the Wind says, that he, although he is a supporter of the regulation of cryptography, is concerned about the upcoming European and Dutch laws on the Innovation of Digital Assets could be significant.
The Dutch Central Bank announced in September that they on 10. January will begin with the regulation of Crypto companies. Wind notes that these new regulations, many of which are already in place in other countries of the European Union – registration, Monitoring, auditing and regular collection of KYC require information (Know-your-customer) as well as the reporting of suspicious transactions to the Dutch authorities.
The XRP developer takes (freely translated):
It makes perfect sense to me, and I’m sure that the regulation is a good thing for a growing and Mature Ecosystem, the cases, its way to more and more applications and users. But: Think of the cases of all these new and innovative application. You think of Micropayments. Think of the Streaming of the payments, the Internet of value.
Imagine now all the small Teams of developers, crypto enthusiasts, innovators, contracts with KYC providers,[Anti-money laundering], you need to complete the data providers, risk profiles define transactions scanning, AML-related interactions with customers…. Think of the costs associated with the launch of the smallest crypto-project.
The solution of the Wind is to establish a “crypto regulatory compliance company”, the all takes on these tasks for large and small Crypto companies. He says that he has already assembled a small Team of innovators, developers and consultants, and that the company will initially focus on the provision of services to EU-regulations.
The idea is that crypto-platforms and applications to guide your end users to be new business.
Once the customer is on Board, he is sent with a Token back to the crypto-platform/App, so that it is of the crypto-platform/App is the ability to use our API to the pre-authorization of transactions, Checking the customer’s account status, the customer limits etc. AML/risk profile-related matters will be the interaction between the company and the customer.
The a account with “the company” can be used to access all of the connected platforms/applications, with only a minimal amount of personal data to the platform/application is sent.
(You probably know processes, such as the one I mention just now: Did you authorized ever a App, with [ Facebook / Google / Twitter / ….] register? Now: it is so, but it has been applied to crypto, KYC, AML, etc.
Wind describes that the company is still in its infancy. The next step is to analyze the profitability of the project from a legal and regulatory point of view.
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