MPs Of UK Want Crypto Included In Gambling Act 2005, Request More Crypto Regulations

• The demand for introducing a broader regulatory framework for the crypto industry has been presented by the ministers of parliament in the UK.

• The Financial Conduct Authority is hoping to get more regulatory authority for crypto assets, however, for now, it can only regulate crypto assets if there is a violation of laws concerning terrorism financing and anti-money laundering.

• The Advertising Standards Authority will soon release guidelines for organizations to market crypto assets. 

Campaigners and the minister of parliament in the UK now want further regulations for digital assets, cryptocurrencies. The request to include digital assets in approaching government review of the Gambling Act of 2005. In the UK, crypto assets have been subjected to minimum law, although the ASA (Advertising Standards Authority) has reprimanded Floki Inu and Arsenal FC, the top-flight UK football team, for their advertising. Arsenal FC was selected to advertise the fan tokens that ensure the owner’s vote in some decisions concerning the club.

Football stars’ promotion of NFTs, including John Terry and Wayne Rooney, has resulted in worries of users losing their money. The former aide, Matt Zorb-Cousin, of the Labor Party Politician, Jeremy Corbyn, said that it is normal for football clubs to market gambling to their fans, but for him, it’s on another level. Consequently, individuals might disrupt their lives, and it’s way too worse to show a way into the crypto industry by making users believe about empowering them in an unregulated and effective manner.

ALSO READ – MACAU CASINO LICENSES EXPIRE FIRST TIME IN 20 YEARS, CHINA TO LEVERAGE THIS FOR IMPLEMENTING DIGITAL YUAN

FCA Wants More Regulatory Authority

The financial watchdog of the UK, the FCA (Financial Conduct Authority), acquires the power only to regulate cryptocurrencies if any laws related to terrorism financing and anti-money laundering have been violated. However, the regulatory authority is looking forward to acquiring more authority for investigating the crypto industry.

The chairman of the FCA, Charles Randall, in September 2021, gave a speech on economic crime to the Cambridge International Symposium, in which he explained that at FCA, they have constantly alerted about the risks involved in holding any token, and it should be noted that the FCA doesn’t regulate the tokens in any manner. He further explained that the primary focus of FCA is investor protection and criminal activities, therefore they do not plan to force any Draconian regulations. Also, a crypto exchange platform, Coinpass, has been approved by the FCA to work as the organization of crypto assets.

ASA To Regulate Crypto Advertisements

The ASA also understands its responsibilities and said that they realize the viable role they have in regulating advertisements. The authority has banned several advertisements related to crypto, and in December 2021, it decided to observe the crypto advertisements as a red-alert priority issue. The ASA is set to release guidelines soon for organizations about how they can market cryptocurrencies.

After discussing with stakeholders in 2020, the treasury is anticipated to file a response to its findings. One of the spokesmen expressed that they want to make sure that the advertisements of cryptocurrencies meet the same standards of other modes of payment and do not mislead anyone in any way.