Amid political and economic turmoil in the UK, MPs have taken time to discuss cryptocurrencies.
Plans to regulate cryptocurrency-like gambling and even potentially give control to the UK Gambling Commission (UKGC) have been derailed.
UK House of Commons Finance Committee
A proposal to classify cryptocurrency trading as gambling has been rejected by the UK government.The House Finance Committee had proposed the idea, saying investing in cryptocurrencies is like gambling.
The government's plan to apply traditional financial regulations to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) raised eyebrows among officials at a finance ministry committee in May.They argued that the move could give consumers a false sense of security about buying cryptocurrencies.
Due to the volatility of the crypto market, the Commission has decided that crypto trading is no different from gambling.By doing so, they have shown that they do not understand the ecosystem.Crypto was created as a form of currency, so any transaction is more like the forex market and less like gambling.
A hard pass to Treasury ideas
The Treasury Commission has self-acknowledged that cryptocurrency financial services should face the same regulation and consequences as other industries with similar risks.In light of this, the commission called on the government to classify cryptocurrencies as a form of gambling and regulate them accordingly.
アンドリュー・グリフィス財務長官は、「英国が世界的なアプローチとかけ離れたシステムを一方的に採用した場合、暗号資産活動が海外に押し流され、英国が暗号資産をより安全なものにし、潜在的な利益を活用する機会が減少する可能性があります。On July 7, UK Chancellor of the Exchequer Andrew Griffiths announced that he did not agree with the Treasury Commission's recommendations.The minister said the finance ministry is not entirely on board with the idea of treating crypto-assets as gambling for trading and investment purposes.
He added that there is still a need for initiatives to establish a regulatory framework for the crypto economy, which should be treated on a par with traditional currencies. Given the crash of the FTX cryptocurrency exchange in November 2022, it is clear that classifying cryptocurrencies as mere gambling will not effectively manage the associated risks.
Additionally, the Treasury Commission’s approach could be at odds with international approaches to crypto regulation.Domestically, the Commission's plan to bring the UKGC under control would widen the gap in proper oversight between gaming regulators and financial oversight, leaving it unclear who was actually in charge. will do.
Crypto Surveillance Continues
Just because the government rejected the Treasury Department's approach doesn't mean there isn't a movement to regulate crypto.Last month, a regulatory bill aimed at overseeing the cryptocurrency industry was submitted to parliament for debate.
The bill sets out regulations for the crypto industry and the use of crypto promotion and advertising.The bill includes language that would force the promotion of crypto companies to receive regulatory approval, similar to current financial sector regulation.
By the end of 2023, the government could implement the bill.In addition, it was revealed that the government actively participated in the proposals put forward by the Finance Committee.
The UK has repeatedly indicated its desire to become a global crypto hub.This will require a common sense approach to supervision and a thorough understanding of the concept of digital currency.
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