The UK Treasury Committee has published reportcalling on the government to regulate cryptocurrencies as gambling tools, not funds.
Retailing digital assets is more like sports betting than investment, according to the agency. Even major cryptocurrencies like Bitcoin and Ethereum “have no intrinsic value and serve no useful social purpose.”
In February, the Treasury Committee already issued recommendations to the UK authorities calling for “tough regulation”.
“The committee is also concerned that regulating consumer trading in digital assets as a financial service – as proposed by the government – would create a halo effect, leading consumers to believe that this activity is safe and protected when it is not,” the report says. .
The agency notes that the volatility of cryptocurrencies poses a serious risk for retail players. However, officials acknowledge the benefits of blockchain technology itself for the economy.
The trade association CryptoUK, which represents the interests of the crypto industry, strongly disagrees with the characterization of the Treasury.
“We are both concerned and disappointed by these allegations, which are unhelpful, false, fundamentally wrong and unfounded,” the organization said.
Recall that in February, the UK Treasury published a document on the preparation of the introduction of supervision of cryptocurrency exchanges and landing platforms in order to comply with “fair and reliable standards”.
Earlier, the Deputy Governor of the Bank of England, John Cunliffe, proposed regulating digital assets by analogy with traditional finance. He also pointed out that decentralized protocols do not yet provide an effective way to manage risk.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
The UK Treasury Committee has published reportcalling on the government to regulate cryptocurrencies as gambling tools, not funds.
Retailing digital assets is more like sports betting than investment, according to the agency. Even major cryptocurrencies like Bitcoin and Ethereum “have no intrinsic value and serve no useful social purpose.”
In February, the Treasury Committee already issued recommendations to the UK authorities calling for “tough regulation”.
“The committee is also concerned that regulating consumer trading in digital assets as a financial service – as proposed by the government – would create a halo effect, leading consumers to believe that this activity is safe and protected when it is not,” the report says. .
The agency notes that the volatility of cryptocurrencies poses a serious risk for retail players. However, officials acknowledge the benefits of blockchain technology itself for the economy.
The trade association CryptoUK, which represents the interests of the crypto industry, strongly disagrees with the characterization of the Treasury.
“We are both concerned and disappointed by these allegations, which are unhelpful, false, fundamentally wrong and unfounded,” the organization said.
Recall that in February, the UK Treasury published a document on the preparation of the introduction of supervision of cryptocurrency exchanges and landing platforms in order to comply with “fair and reliable standards”.
Earlier, the Deputy Governor of the Bank of England, John Cunliffe, proposed regulating digital assets by analogy with traditional finance. He also pointed out that decentralized protocols do not yet provide an effective way to manage risk.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
