The UK Parliament Treasury Committee says cryptocurrencies such as Bitcoin (BTC) pose similar risks to consumers as gambling and should be regulated as such.
In a committee of the House of Representatives reportThe UK Parliament says that given the volatile nature of cryptocurrencies, trading the new asset class is similar to engaging in gambling activities.
“Regardless of the regulatory regime, their price volatility and absence of intrinsic value means that unbacked crypto-assets inevitably pose significant risks to consumers. Moreover, consumer speculation in unsupported crypto assets is more like gambling than a financial service.”
Parliament is also urging the government to regulate crypto trading as a form of gambling rather than a financial service, in line with the principle of “same risk, same regulatory outcome”.
“We are concerned that regulating retail and investment activity in unsupported cryptoassets as a financial service will create a ‘halo’ effect that leads consumers to believe that this activity is more secure than it is, or protected if it is not. ”
In April 2022, the UK government announced plans to make Britain a global hub for technology and crypto asset investment. The new report proposes a series of measures for authorities following an investigation into the role of digital assets in the country.
“We recommend that the government take a balanced approach to support the development of crypto asset technologies. It should try to avoid spending public funds supporting crypto asset operations without a clear, beneficial use case.
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