UK Economic Secretary rejects regulating crypto as gambling, advocates for financial services framework

Andrew Griffith, U.K’s Economic Secretary to the Treasury, has rejected the Parliament Treasury Select Committee’s proposal to modulate cryptocurrency trading arsenic gambling, according to a effect published connected July 20.

In a May report, the U.K’s Treasury Committee acknowledged that blockchain exertion could beryllium beneficial to the fiscal services industry. However, it likened cryptocurrency investing and trading to gambling, recommending that the manufacture should beryllium regulated arsenic such.

Griffith argued that adopting the Parliament’s Committee proposal would effect successful a struggle with planetary regulators and would not adequately code the risks associated with the industry.

“The Committee’s projected attack would truthful hazard creating misalignment with planetary standards and approaches from different large jurisdictions including the EU, and perchance make unclear and overlapping mandates betwixt fiscal regulators and the Gambling Commission.”

The Economic Secretary pointed retired that planetary organizations, including the International Organization of Securities Commissions (IOSCO) and the G20 Financial Stability Board (FSB), person introduced recommendations that adequately code the regulatory hazard of the industry. He explained that:

“[The planetary bodies proposal are] grounded successful the rule of ‘same activity, aforesaid risk, aforesaid regulatory outcome’, meaning that immoderate cryptoasset enactment that performs a akin function, and poses akin risks, to those successful the accepted fiscal strategy (for example, operating a trading level oregon providing custody services) are taxable to regularisation that ensures equivalent outcomes.”

Griffith further stated that the cryptocurrency manufacture volition payment much if an due fiscal services regulatory model is developed to “address the risks of unbacked crypto assets and [create] the conditions for harmless innovation.”

Meanwhile, the authorities authoritative stated that the authorities were taking proactive measures to combat consumers being misinformed astir cryptocurrencies. Griffith noted that the authorities has a dedicated fiscal promotions regulatory authorities for crypto assets, adding that determination are proposals to “ensure consumers person entree to close accusation erstwhile making concern decisions.”

Earlier this month, the U.K.’s Financial Conduct Authority (FCA) issued a warning to crypto firms and advertisers, urging them to comply with the upcoming fiscal promotions regime, acceptable to beryllium implemented successful the manufacture by October.

The station UK Economic Secretary rejects regulating crypto arsenic gambling, advocates for fiscal services framework appeared archetypal connected CryptoSlate.