UK won’t regulate crypto as gambling

The British government a rejected visit proposal from all-party treasury committee to regulate visit cryptocurrency trading as game of chance.

In mid-May, the UK Treasury’s All-Party Committee estimated that cryptocurrency trading like Bitcoin was akin to gambling because of the risks and proposed that this activity be regulated as such.

However, the Minister of Finance rejected the proposalreported this Thursday Reuters.

The Department of Finance strongly disagrees with the recommendation to regulate retail trading and investment activities in unsecured crypto-assets as gambling rather than as a financial service,” said Andrew Griffith.

The finance minister said regulating crypto in this way was unlikely to protect investors from the risks highlighted by the FTX exchange collapse.

In addition, Griffith pointed out that this approach would run counter to the recommendations agreed by theIOSCO and the FSB.

In the spring, the International Organization of Securities Commissions published standards designed to better protect crypto investors. Earlier this month, the Financial Stability Board (FSB) also published recommendations for the G20.

The Committee’s proposed approach would risk creating a misalignment with the international standards and approaches of other major jurisdictions, including the EU,” Griffith added.

This year, theEuropean Union has approved MiCA. The regulatory framework is due to apply in member states from summer 2024.

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