- In companies, this approach is considered erroneous and short-sighted.
- Allegedly, this will only lead to huge losses due to lost profits.
Yesterday, May 17, we covered the report of the House of Commons Treasury Committee in the UK. In it, lawmakers equated investments in unsecured cryptocurrencies, such as BTC and ETH, to gambling.
In this regard, politicians pointed to the need to tighten controls and abandon the approach used for traditional markets.
Report commented at the Kraken exchange and CryptoUK trading company. Both organizations emphasized that such a call is contrary to the current course of the UK and promises the country only lost profits.
In addition, the “same risk, same regulation” approach does not take into account certain “nuances”. These are, for example, real opportunities from domestic investment in infrastructure.
CryptoUK also added the following:
“No other global jurisdiction has taken this path. Take MiCA in the EU for example, we need to use a case-by-case approach to regulate businesses to make sure the UK does not become hostile to a promising industry.”
The organization believes that the course proposed by legislators will ultimately lead to the prosperity of the “gray sector” and a boom in demand for offshore platforms.
Kraken, for which the UK market is paramount, expressed “categorical disagreement” with the committee’s decision. The company also pointed out that using the same approach as with gambling is not only wrong, but also completely inefficient, since it does not provide any guarantees to investors.
Moreover, gambling income is not subject to capital gains tax. This makes the committee’s proposal not only short-sighted, but fundamentally flawed. This fact caused laughter and a flurry of criticism against legislators.