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UK Sees Crypto Trading as Gambling, Eyes Regulation

• The United Kingdom is suggesting that crypto trading be regulated in the same way as gambling activities.
• This is due to its volatile nature and potential for addiction, making it similar to gambling.
• The U.K. Treasury committee has released a report claiming that crypto and blockchain should not be regulated by the Financial Conduct Authority (FCA).

The U.K.’s Argument For Crypto Regulation

The United Kingdom believes that investing in cryptocurrency can be likened to gambling due to its volatility and susceptibility to addiction, and thus wants crypto trading to be regulated in the same way as gambling activities are. Conservative MP and Treasury Committee Chair Harriett Baldwin stated: “Effective regulation is clearly needed to protect consumers from harm, as well as to support productive innovation in the U.K.’s financial services industry”

The Report on Crypto Regulation

A special committee under the Treasury has released a report claiming that cryptocurrencies like Bitcoin have no intrinsic value, huge price volatility, and offer no discernible social good; therefore they should be regulated more like gambling than financial services products. This means that traders must be aware of how high their risk of losing all their money is when betting on these unbacked tokens.

Future Regulations

No rules have been officially implemented yet regarding crypto regulation, however if these suggestions pass into law it could influence future regulations in the United Kingdom and potentially even within the European Union (EU).

Opposition To Regulations

Not everyone agrees with this sentiment – especially those who believe that cryptocurrency and blockchain technology should not fall under FCA regulations. The Treasury report states: „It is not the government’s role to stifle innovation or pick winners“ which suggests an opposition against over-regulating a new technology which could potentially benefit society immensely if left alone.

Conclusion

The debate surrounding whether or not cryptocurrencies like Bitcoin should be classified more as a financial service or a form of gambling continues with no clear answer yet in sight; however if these regulations pass into law they could have major implications for both cryptocurrency traders and blockchain innovators alike across Europe – though there does seem to still be some opposition against such strict regulations being enforced upon this nascent technology.