Crypto in the UK: Regulating Trading as Gambling and the Future of Digital Currency
The UK government is considering regulating crypto trading as gambling, according to a report from the House of Commons Treasury Committee. They propose that the Gambling Commission oversee crypto activities, offering guidance and implementing safeguards against problem gambling, money laundering, and terrorist financing.
Crypto trades would also be taxed as gambling to support debt advice and addiction services. The committee views crypto as having limited use cases, mainly for improving international payments. They express concerns about cryptocurrencies like Bitcoin and Ethereum, calling them “unbacked cryptoassets” with no intrinsic value. The committee sees crypto trading as resembling gambling due to its price volatility and consumer behavior.
However, initial industry reactions are negative, with some viewing this proposal as a setback for the UK’s digital currency aspirations. It conflicts with previous plans to bring crypto in line with existing financial regulations. The UK government had expressed its ambition to become a global crypto asset technology hub but now faces criticism for perceived red tape. The canceled collaboration with the Royal Mint to produce an NFT further illustrates the changing landscape. The government believes the demand for such ventures may no longer be as significant as before.
Clever Robot News Desk 18th May 2023