The UK Treasury Committee said in the new report that retail crypto trading should be regulated as gambling.
The UK Treasury Committee has released a report compelling the government to regulate cryptocurrencies as gambling instruments, not financial assets.
UK Treasury Committee Requests Crypto Transactions to Be Regulated as Gambling
According to a newly released report, the UK House of Commons Treasury Committee states that crypto trading is more like sports betting than investing and therefore needs to be regulated. This report was prepared by a group of bipartisan parliamentarians and argues that even bluechip crypto assets “have no intrinsic value and serve no useful social purpose.” Therefore, it is suggested that the government should regulate these assets as gambling instruments.
The release of the report follows, in a February update from the Treasury, outlining the government’s plans to “rigorously regulate crypto-asset activity.” Recently, lobbyists representing traditional financial firms have warned that the UK’s plans to regulate cryptocurrencies could legitimize a risk-ridden market.
The Treasury Committee shares the same concerns, and the report points out that the volatility of cryptocurrencies poses a serious risk to retail bettors.
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