- Treasury Committee in the House of Commons opposes regulation of cryptocurrencies as traditional assets
- A group of lawmakers is pushing to equate trading in unsecured tokens with gambling
- Appears it will reduce risks for investors
The UK Treasury Committee in the House of Commons is pushing to equate cryptocurrency investments with gambling.
Otherwise, it would give the wrong impression to depositors that the industry is stable and safe. The relevant thesis is outlined in the department’s May 17 report.
The committee has openly criticized the Treasury Department’s current position, saying that unsecured cryptocurrencies, such as BTC or ETH, should not be regulated in the same way as traditional assets.
Lawmakers believe that high volatility and lack of intrinsic value will inevitably create additional risks for investors. The asset class in question is speculative, and investing in it is like “playing casino games.”
“We are concerned that regulating retail and investment activities in relation to unsecured cryptoassets as a financial service will create an illusion of security in depositors,” committee chair Harriett Baldwin.
The entire gambling sector in the UK is regulated by a separate agency under the Gambling Act (2005). The oversight here is much tighter than in the financial field.
Before, the U.K. authorities invited participants in the digital asset market to an open dialogue.. Major contractors urged lawmakers to “think outside the box” and not repeat the mistakes of the United States.
Major contractors urged lawmakers to “think outside the box” and not repeat the mistakes of the United States.