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Opinions among U.K. lawmakers vary regarding the appropriate regulatory approach for cryptocurrencies in the country. While some lawmakers draw comparisons between crypto and gambling, others show support for the government’s initiatives aimed at integrating digital assets within the existing framework of financial services regulation.
House of Commons Treasury Select Committee says crypto should be treated like gambling
In the past month, the House of Commons Treasury Select Committee, comprised of 11 members of Parliament, recommended treating cryptocurrencies similarly to gambling due to their perceived lack of intrinsic value and significant price volatility. This suggestion was met with immediate opposition from the crypto industry and has also faced resistance from other lawmakers.
Conversely, an All Party Parliamentary Group (APPG) for crypto assets, consisting of 15 members of Parliament and Lords, released a report on Monday supporting the government’s proposal to regulate cryptocurrencies as financial services.
During an event commemorating the release of the APPG’s crypto inquiry report, Lisa Cameron, the Chair of the group, listed various reasons for supporting the government’s position, including the facilitation of tax collection.
According to the report, the All Party Parliamentary Group (APPG) aligns with the stance of HM Treasury, asserting that cryptocurrency and digital assets should be regulated to the extent that is feasible and suitable, utilizing both existing and new financial services regulations. The report emphasizes the effectiveness of such regulations in minimizing risks for consumers and investors.
The United Kingdom has taken a proactive stance toward cryptocurrency regulation, aiming to balance innovation and consumer protection. The UK government recognizes the potential benefits of cryptocurrencies and blockchain technology while acknowledging the associated risks, such as volatility, fraud, and money laundering.
In terms of regulation, the Financial Conduct Authority (FCA) is the primary regulatory body responsible for overseeing crypto-related activities in the UK.