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UK Treasury Economic Secretary Andrew Griffiths said that equating crypto assets as gambling would risk creating mis-alignment with international standards and the approach of other major jurisdictions, including the European Union.
Responding to the Treasury committee report on regulating crypto, Griffith said such a move would potentially create unclear and overlapping mandates between financial regulators and the Gambling Commission.
Regulating Crypto in the UK
In the latest statement, Griffith Said Regulating retail crypto trading in the same way it regulates gambling would put the UK at odds with globally agreed recommendations from international organizations and standard-setting bodies, including the International Organization of Securities Commissions (IOSCO)1 and the G20 Financial Stability Board (FSB).
“HM Treasury” strongly disagrees with the committee’s recommendation to regulate retail trading and investment activity in non-backed crypto assets as gambling rather than as a financial service.
According to Griffiths, a system of gambling regulation may not be able to successfully mitigate a number of significant risks associated with crypto assets, such as market manipulation, insufficient prudential arrangements and deficiencies in core financial risk management practices.
He favored a financial services regulatory framework to address such risks of “unprotected crypto assets” and create an environment conducive to secure innovation. To that extent, Griffiths pointed out that the government is in the process of introducing a dedicated financial incentive regulatory regime for crypto assets.
The law was tabled in Parliament last month and has been heavily debated and is expected to come into force by the end of 2023.
regulation and resistance
Prime Minister Rishi Sunak is keen to position the country as a crypto hub, but his plans have faced significant resistance from lawmakers. Bank of England Governor Andrew Bailey previously argued that bitcoin and other crypto assets “have no intrinsic value.”
Treasury Committee Chair Harriet Baldwin characterized the asset class as the “Wild West,” highlighting 2022 events and consumer risks.
Griffith’s latest statement is in response to a report published on May 17 by a House of Commons committee, which “strongly” suggested regulating retail crypto trading and investment activity as gambling. The report essentially based recommendations on the principle of “same activity, same risk, same regulatory consequence”.
CryptoUK, a self-regulatory trade association for the UK crypto-asset industry, also expressed dissatisfaction with crypto assets being treated as gambling.
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UK Treasury Economic Secretary Andrew Griffiths said that equating crypto assets as gambling would risk creating mis-alignment with international standards and the approach of other major jurisdictions, including the European Union.
Responding to the Treasury committee report on regulating crypto, Griffith said such a move would potentially create unclear and overlapping mandates between financial regulators and the Gambling Commission.
Regulating Crypto in the UK
In the latest statement, Griffith Said Regulating retail crypto trading in the same way it regulates gambling would put the UK at odds with globally agreed recommendations from international organizations and standard-setting bodies, including the International Organization of Securities Commissions (IOSCO)1 and the G20 Financial Stability Board (FSB).
“HM Treasury” strongly disagrees with the committee’s recommendation to regulate retail trading and investment activity in non-backed crypto assets as gambling rather than as a financial service.
According to Griffiths, a system of gambling regulation may not be able to successfully mitigate a number of significant risks associated with crypto assets, such as market manipulation, insufficient prudential arrangements and deficiencies in core financial risk management practices.
He favored a financial services regulatory framework to address such risks of “unprotected crypto assets” and create an environment conducive to secure innovation. To that extent, Griffiths pointed out that the government is in the process of introducing a dedicated financial incentive regulatory regime for crypto assets.
The law was tabled in Parliament last month and has been heavily debated and is expected to come into force by the end of 2023.
regulation and resistance
Prime Minister Rishi Sunak is keen to position the country as a crypto hub, but his plans have faced significant resistance from lawmakers. Bank of England Governor Andrew Bailey previously argued that bitcoin and other crypto assets “have no intrinsic value.”
Treasury Committee Chair Harriet Baldwin characterized the asset class as the “Wild West,” highlighting 2022 events and consumer risks.
Griffith’s latest statement is in response to a report published on May 17 by a House of Commons committee, which “strongly” suggested regulating retail crypto trading and investment activity as gambling. The report essentially based recommendations on the principle of “same activity, same risk, same regulatory consequence”.
CryptoUK, a self-regulatory trade association for the UK crypto-asset industry, also expressed dissatisfaction with crypto assets being treated as gambling.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
