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The United Kingdom has big aspirations of becoming a digital asset hub, like London already is for traditional finance.
However, those plans are being thwarted by watchdogs and policymakers who want to take a tougher approach to regulation.
On May 17, it was reported that a panel of UK MPs said that crypto assets should be regulated as gambling “provided they are potentially used by fraudsters and pose a significant risk to consumers”. “
The report of the Treasury Committee of Parliament states that cryptocurrencies are not backed by any currency or asset. This leads to “price volatility and the possibility of wiping out all the money invested in them”. According to Reuters.
crypto is gambling, not finance
This is a similar stance to the United States, where many policymakers have labeled digital assets as everything from ‘shadow banking’ to ‘casino chips’.
The UK Treasury Committee said that regulating retail trading and investment in unbacked cryptocurrencies could create a ‘halo’ effect. This can cause users to think that the activity is secure or that they are secure when they are not.
“We therefore strongly recommend that the government regulate retail trading and investment activity in non-backed cryptoassets as gambling rather than as a financial service in line with its stated principle of ‘same risk, same regulatory consequence’.”
Treasury Committee Chair Harriet Baldwin dubbed the industry the “Wild West”. He said that the events of 2022 have highlighted the risks faced by consumers.
In April, the Economic Secretary to the UK Treasury, Andrew Griffiths, said that crypto regulations would be implemented within the next 12 months.
Sunak and Bailey’s Views
Prime Minister Rishi Sunak is keen to promote the country as a crypto hub but is facing a lot of resistance from the Treasury and the Central Bank.
Bank of England Governor Andrew Bailey has repeatedly argued that bitcoin and its brethren have “no intrinsic value.” UK banks are also increasingly refusing to work with crypto companies and putting up barriers for their customers.
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The United Kingdom has big aspirations of becoming a digital asset hub, like London already is for traditional finance.
However, those plans are being thwarted by watchdogs and policymakers who want to take a tougher approach to regulation.
On May 17, it was reported that a panel of UK MPs said that crypto assets should be regulated as gambling “provided they are potentially used by fraudsters and pose a significant risk to consumers”. “
The report of the Treasury Committee of Parliament states that cryptocurrencies are not backed by any currency or asset. This leads to “price volatility and the possibility of wiping out all the money invested in them”. According to Reuters.
crypto is gambling, not finance
This is a similar stance to the United States, where many policymakers have labeled digital assets as everything from ‘shadow banking’ to ‘casino chips’.
The UK Treasury Committee said that regulating retail trading and investment in unbacked cryptocurrencies could create a ‘halo’ effect. This can cause users to think that the activity is secure or that they are secure when they are not.
“We therefore strongly recommend that the government regulate retail trading and investment activity in non-backed cryptoassets as gambling rather than as a financial service in line with its stated principle of ‘same risk, same regulatory consequence’.”
Treasury Committee Chair Harriet Baldwin dubbed the industry the “Wild West”. He said that the events of 2022 have highlighted the risks faced by consumers.
In April, the Economic Secretary to the UK Treasury, Andrew Griffiths, said that crypto regulations would be implemented within the next 12 months.
Sunak and Bailey’s Views
Prime Minister Rishi Sunak is keen to promote the country as a crypto hub but is facing a lot of resistance from the Treasury and the Central Bank.
Bank of England Governor Andrew Bailey has repeatedly argued that bitcoin and its brethren have “no intrinsic value.” UK banks are also increasingly refusing to work with crypto companies and putting up barriers for their customers.
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PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
