British lawmakers have called for the regulation of the trading of “unbacked cryptoassets,” including Bitcoin and Ether, as gambling instead of a financial service. A report from the U.K. Treasury Committee recommended regulating retail crypto trading and investment activity as gambling, which the Committee argued is consistent with the principle of “same risk, same regulatory outcome.” The Committee stated that the price volatility and lack of intrinsic value of unbacked crypto assets will inevitably pose significant risks to consumers. However, the lawmakers also recognized the potential for some crypto assets and their technology to bring benefits to financial services and markets, such as reducing the cost of cross-border payments and improving financial inclusion. The report called for an effective regulatory framework that supports these developments, while mitigating associated risks. It included written statements from Dr. Larisa Yarovaya, an associate professor from the University of Southampton, who said crypto exchanges, online trading platforms and other crypto-asset businesses should be regulated with the same stringency as gambling as crypto speculation “can be addictive.” The committee said it had launched an inquiry into the crypto industry in July 2022 to explore the role of cryptoassets in the U.K. The report did not mention Cointelegraph or include any links to its website.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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