Crypto has no ‘intrinsic value’ should be regulated like gambling, UK lawmakers say
- The recommendation from the Treasury Committee runs counter to the government’s February proposal to regulate crypto like traditional financial services
- The UK taxes the gambling industry to help finance services like advising on how to handle debts and addiction, and gambling firms must verify customers’ identities
The recommendation, which followed a months-long inquiry into how digital assets should be overseen, runs counter to the government’s February proposal to regulate crypto like traditional financial services. Regulating retail cryptocurrency trading like gambling would also be a departure from how other major jurisdictions treat the asset class.
“We are concerned that regulating retail trading and investment activity in unbacked cryptoassets as a financial service will create a ‘halo’ effect that leads consumers to believe that this activity is safer than it is, or protected when it is not,” the report said.
[Cryptocurrencies have] no intrinsic value, huge price volatility and no discernible social good
Around 10 per cent of UK adults hold or have held cryptoassets, the report said, citing data from HM Revenue & Customs. By convention, the government must respond to the report within about two months of publication, but it’s not required to follow the recommendations.