Finance Minister Andrew Griffith said during a report to the House of Commons Treasury Committee that the ministry “strongly disagrees” with MPs’ proposals for the format of regulation of retail and investment activity in cryptoassets.
Griffith explained to the audience that the department’s view was that regulating crypto transactions along the lines of gambling not only fails to address risk factors, but puts the legislation at odds with international regulatory principles and the approaches of other jurisdictions, including EU countries.
“The gambling regulatory system may be unable to adequately mitigate many of the critical risks that are associated with market manipulation, inadequate prudential arrangements and deficiencies in financial risk management practices, including risks of consumer misinformation,” Andrew Griffith sought to explain.
Earlier this year, the UK government presented a vision for a future updated regulatory framework for cryptocurrencies. Announcing the start of the public consultation, Andrew Griffith said at the time that the UK Finance Ministry hoped to achieve “clear, effective and timely regulation, as well as proactive engagement with the industry”.