Treasury Committee requests that cryptocurrencies in the UK be governed similarly to gambling were rejected by the UK government. According to Financial Services Minister Andrew Griffith, doing so would put one in conflict with financial regulators around the world and not reduce risk.
UK Ministry of Finance Rejects Proposed Regulation for Cryptocurrencies
The government’s response to the Treasury Committee‘s recommendations was made public. These recommendations were made out of fear that legalizing cryptocurrencies as a financial service might mislead customers into believing that they are safe while, in reality, there is a high risk associated with trading and investing in cryptocurrencies.
The reply makes it clear that the government disagrees with the committee’s suggestions for regulations. MPs are aware of the advantages that the use of cryptocurrencies can have for international trade and the necessity to maximize those advantages by keeping up with developments throughout the world. Because of this, the government has declared that it will control cryptocurrency as a financial service.
Divergence of Opinion between the Ministry of Finance and the Treasury Select Committee
According to the government, employing gambling laws to regulate cryptocurrencies wouldn’t stop events like the demise of the FTX crypto exchange. It also mentioned the necessity of cooperating with international financial standard-setting organizations like the G20 Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) in its response to the Treasury Committee.
The risks associated with the gambling sector are not seen by the government as being comparable to those associated with cryptocurrencies. Thus, it thinks that the Gambling Commission’s collaboration with international financial regulators will result in a lack of transparency and uniformity. So, the UK’s future regulation of cryptocurrencies is likely to proceed along the same lines as what the EU has already started to do.
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