- In companies, this approach is seen as misguided and short-sighted
- As it will only lead to huge losses due to lost profits
We covered the House of Commons Treasury Committee report in Britain yesterday, May 17. In it, lawmakers equated investing in unsecured cryptocurrencies such as BTC and ETH with gambling.
In this regard, politicians pointed to the need to tighten controls and abandon the approach used for traditional markets.
The report commented at the Kraken exchange and trading company CryptoUK. Both organizations stressed that such a call goes against the current course of the UK and promises only lost profits for the country.
In addition, the approach of “same risk, same regulation” does not take into account certain “nuances”.. These are, for example, real opportunities from inward investment in infrastructure.
CryptoUK also added the following:
“No other global jurisdiction has gone this route.
Take MiCA in the EU, for example, we have to take a case-by-case approach to regulating business to make sure the UK does not become a country hostile to a promising industry.”
The organization believes that the course proposed by lawmakers will eventually lead to a flourishing gray sector and a boom in demand for offshore platforms.
The Kraken, for which the UK market is archival, expressed “categorical disagreement” with the committee’s decision.
The company also pointed out that using the same approach as with gambling is not only wrong, but also completely ineffective, because it does not provide any guarantees to investors.
Furthermore, income derived from gambling is not subject to capital gains tax. This makes the committee’s proposal not just short-sighted, but fundamentally flawed.
This fact provoked laughter and a barrage of criticism from lawmakers.