A member of Parliament in the UK is calling for tighter regulations on consumer trading of cryptocurrencies such as Bitcoin, stating that it more closely resembles gambling than financial service. Harriett Baldwin, who also chairs the Treasury Committee, expressed her concerns about the lack of intrinsic value and the high price volatility of cryptocurrencies. She also lamented that there was no discernible social good to be gained from their use.
In a statement, she said, “By betting on these unbacked ‘tokens,’ consumers should be aware that all their money could be lost.” Baldwin’s comments come amidst a growing concern among regulators and policymakers globally about the potential risks attached to cryptocurrency trading.
Despite the popularity of cryptocurrencies such as Bitcoin, their unregulated nature has created numerous issues around fraud and hacking. Accordingly, Baldwin’s call for tighter consumer trading regulations may help safeguard individuals from losing their hard-earned money.
It is, however, important to note that several credible sources have underlined the potential benefits of cryptocurrency trading, such as decentralization and greater financial inclusion. That said, Baldwin’s concerns should not be taken lightly either. Hence, a balanced approach is needed while regulating cryptocurrencies so that the interests of all stakeholders are taken into account.