British parliament calls to equate cryptocurrencies with gambling
Regulation of both ordinary financial services of trading and investing in cryptocurrencies will create a false sense of security among depositors, officials say
The U.K. House of Commons Treasury Committee argues that investing in “unsecured” cryptocurrencies like Bitcoin and Ethereum should be equated with gambling. Regulating the industry without such an approach could create an illusion of safety for investors in crypto-assets. That’s according to a committee report released May 17.
The House of Commons Treasury Committee is charged with examining Treasury spending, administration and policy. With all of its agencies and related bodies, including the Internal Revenue Service, Customs, the Bank of England.And the Financial Conduct Authority, the Royal Mint, and other government agencies. And the Financial Conduct Authority, the Royal Mint, and other government agencies.
Late last October, members of the U.K.’s lower house of parliament voted to recognize cryptocurrencies as regulated financial instruments. In their opinion, cryptocurrencies should be considered another type of financial assets, rather than a separate category.
The committee criticized this position in its report, saying that the government should take a different approach to regulating cryptocurrencies. To better protect consumers from losses due to the increased volatility of “unsecured assets,” such as Bitcoin and Ethereum.
Characteristics of cryptocurrency are more reminiscent of gambling than financial services.
Which is also supported by data on their consumer behavior, the report’s authors say. They argue that regulating trading and investing in crypto-assets as regular financial services would lead depositors to believe that the investments are safe, when in fact they are not.
In addition, the committee recommends that the government take a balanced approach to investing in cryptotechnology. And avoid spending public funds to support cryptocurrencies without a clear and profitable application scenario. It is not the government’s job to promote specific innovations for their own sake, the report warns.
Our experts point out that last year, the kingdom’s government set itself the goal of increasing London’s global competitiveness in the financial sector. And that includes the cryptocurrency industry. The U.K. is in the process of developing regulations for crypto-assets. According to the Ministry of Finance, they are aimed at realizing the government’s “ambitions. Which intends to make the country a leader in the cryptocurrency industry.