UK Government Rejects Push From Lawmakers To Regulate Crypto Trading As Gambling

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The UK government has opposed a call from a cross-party panel of UK lawmakers to regulate “unbacked” crypto assets such as Bitcoin and Ether as gambling. The executive branch argued that such treatment goes against standards recommended by global bodies such as the G20 Financial Stability Board.

In a report Released in May, the House of Commons Treasury Committee argued that unbacked cryptocurrencies have no intrinsic value or “perceivable social good” but instead carry “enormous price volatility.” As a result, the committee, led by MP Harriet Baldwin, called for digital asset trading to be subject to the same rules as gambling, finance tycoons reported.

However, in a letter received by the House of Commons last Friday, MP Andrew Griffith, the Economic Secretary to Her Majesty’s Treasury, relayed the Government’s objection to the proposal, according to A declaration released by the UK Parliament today (Friday).

Griffith in the letter noted that international crypto regulatory standards are based on the “same business, same risk, same regulatory outcome” principle which requires extending the rules imposed on traditional financial institutions such as banks, to corporations. of digital assets.

“The approach proposed by the Committee would therefore risk creating misalignment with international standards and approaches of other major jurisdictions, including the EU, and potentially creating unclear and overlapping mandates between financial regulators and the Gambling Commission,” Griffith explained.

Additionally, the Economic Secretary argued that overseeing cryptocurrency trading as gambling may not prevent many of the risks, including market manipulation, that are associated with trading digital assets.

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“A financial services regulatory framework is more appropriate to address the risks of unbacked crypto assets and create the conditions for safe innovation,” Griffith asserted. “This can – and will – be accompanied by a set of robust measures to mitigate the risks to consumers mentioned in the Committee’s report, including the risks of ‘consumer misinformation’”.

UK Crypto Regulation

Meanwhile, the debate between UK lawmakers and government leaders continues even as King Charles III recently ratified the Financial Services and Markets Act 2023. The law classifies cryptocurrency trading as a regulated activity and places stablecoins within the scope of payment rules.

In addition, the Financial Conduct Authority (FCA), the UK financial market watchdog, is finalizing the rules on the marketing and advertising of cryptocurrencies in the country. The rules are due to come into force on October 8 this year.

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The UK government has opposed a call from a cross-party panel of UK lawmakers to regulate “unbacked” crypto assets such as Bitcoin and Ether as gambling. The executive branch argued that such treatment goes against standards recommended by global bodies such as the G20 Financial Stability Board.

In a report Released in May, the House of Commons Treasury Committee argued that unbacked cryptocurrencies have no intrinsic value or “perceivable social good” but instead carry “enormous price volatility.” As a result, the committee, led by MP Harriet Baldwin, called for digital asset trading to be subject to the same rules as gambling, finance tycoons reported.

However, in a letter received by the House of Commons last Friday, MP Andrew Griffith, the Economic Secretary to Her Majesty’s Treasury, relayed the Government’s objection to the proposal, according to A declaration released by the UK Parliament today (Friday).

Griffith in the letter noted that international crypto regulatory standards are based on the “same business, same risk, same regulatory outcome” principle which requires extending the rules imposed on traditional financial institutions such as banks, to digital asset companies.

“The Committee’s proposed approach would therefore risk creating misalignment with international standards and approaches of other major jurisdictions, including the EU, and potentially creating unclear and overlapping mandates between financial regulators and the Gambling Commission,” Griffith explained.

Further, the Economic Secretary argued that overseeing cryptocurrency trading as gambling may not prevent many of the risks, including market manipulation, that are associated with trading digital assets.

“A financial services regulatory framework is more appropriate to address the risks of unbacked crypto assets and create the conditions for safe innovation,” Griffith asserted. “This can – and will – be accompanied by a set of robust measures to mitigate the risks to consumers mentioned in the Committee’s report, including the risks of ‘consumer misinformation’”.

UK Crypto Regulation

Meanwhile, the debate between UK lawmakers and government leaders continues even as King Charles III recently ratified the Financial Services and Markets Act 2023. The law classifies cryptocurrency trading as a regulated activity and places stablecoins within the scope of payment rules.

In addition, the Financial Conduct Authority (FCA), the UK financial market watchdog, is finalizing the rules on the marketing and advertising of cryptocurrencies in the country. The rules are due to come into force on October 8 this year.

IBKR adds Taiwan stocks; multi-charts function on Match-Trader; read the news nuggets of the day.

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