Crypto Will Be Regulated the Same As Gambling, if UK Parliament Gets Its Way – Here’s Why – The Daily Hodl
The UK Parliament’s Treasury Committee says cryptocurrencies reminiscent of Bitcoin (BTC) pose related dangers to customers as playing and must be regulated as such.
In a Home of Commons Committee report, the UK Parliament says that given the risky nature of cryptocurrencies, buying and selling of the brand new asset class is akin to partaking in playing actions.
“Regardless of the regulatory regime, their price volatility and absence of intrinsic value means that unbacked crypto assets will inevitably pose significant risks to consumers. Furthermore, consumer speculation in unbacked crypto assets more closely resembles gambling than it does a financial service.”
The Parliament additionally urges the federal government to control crypto buying and selling as a type of playing somewhat than as a monetary service in line with the precept of “same risk, same regulatory outcome.”
“We are concerned that regulating retail trading and investment activity in unbacked cryptoassets as a financial service will create a ‘halo’ effect that leads consumers to believe that this activity is safer than it is, or protected when it is not.”
In April of 2022, the UK authorities introduced plans to make Britain a world hub for crypto asset expertise and funding. The new report proposes a set of actions for authorities following an inquiry that explored the position of digital belongings within the nation.
“We recommend that the Government takes a balanced approach to supporting the development of crypto asset technologies. It should seek to avoid expending public resources on supporting crypto asset activities without a clear, beneficial use case.”
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