The UK government rejected the MP’s plans to regulate crypto-like gambling, citing the risks posed by events such as the FTX collapse.
The UK government rejected the MP’s plans to regulate crypto-like gambling, noting in a document released on Thursday that its current proposals better address the risks posed by issues such as the FTX collapse. The Treasury says it learned lessons from the collapse of FTX and that the gambling law does not deal with crypto risks.
Comment from government on crypto regulation
The government expressed its views on the crypto regulation plan drawn up by lawmakers as follows;
“A stand-alone gambling regulation system is unlikely to address these risk factors, such as consolidation of FTX client funds or fixing issues associated with insider trading and market manipulation under traditional financial regulation.”
Additionally, the UK government said, referring to the recommendations of the Financial Stability Board, which were endorsed by finance ministers from 20 of the world’s leading economies, “The proposal to rely on gambling regulation would represent a fundamental deviation from the Government’s intended approach that reflects the recommendations of global standard-setting bodies.” He also warned that divergence will only push crypto into the high seas.
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