The UK Government has turned down a House of Commons committee’s proposal to regulate crypto investment as gambling.
The UK is exploring crypto regulation in a phased approach this year, and there are various suggestions about how the asset class should be regulated.
Gambling Regulations Could Not Deal With Risk Factors That Led to FTX Demise
The seventh special report of the session 2022-23 mentions a letter that Andrew Griffith, Economic Secretary to the Treasury, wrote to Harriett Baldwin, the Chair of the Treasury Select Committee.
Griffith strongly disagreed with the proposal to regulate “retail trading and investment activity in unbacked cryptoassets as gambling rather than as a financial service.” He explained that gambling regulations could not deal with the risk factors that led to FTX’s collapse.
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Moreover, the letter mentions that issues such as insider trading, market manipulation, and predatory short selling are present in both the traditional and crypto markets.
The government also feels that treating crypto investment as gambling would clash with other jurisdictions and Financial Stability Board’s approach to regulating the asset class.
Griffith wrote:
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Author: Harsh NotariyaDid you like this?
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