The administration also stated that it is already working to regulate the cryptocurrency market, and that last month, a draft of proposed regulation legislation was presented to the parliament for discussion.
In a conflict of ideologies, the UK Treasury Committee’s proposal to oversee bitcoin retail trading similarly to the regulation of gambling activities was vehemently opposed by the British government. The administration emphasized that it “firmly disagrees” with the Committee’s position on the subject.
In a report delivered to the House of Commons on May 17th, the UK Treasury Committee proposed regulating the country’s cryptocurrency industry in a manner akin to the regulation of gambling. The Committee claims that investing in cryptocurrencies adheres to the tenet “same risk, same regulatory outcome.”
![UK Government Rejects Call to Treat Crypto Like Gambling image 171](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/07/image-171.png?resize=781%2C558&ssl=1)
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Related: UK Government Takes Steps to Regulate Cryptocurrencies
A Question of Regulatory Approach
The suggestion was vehemently rejected by UK Financial Services Minister Andrew Griffith in a letter to the committee on July 20. The recommendation to label retail trading and investing in unbacked cryptoassets as gambling rather than financial services was rejected by the HM Treasury.
All gaming activities in the UK are governed under the Gaming Act of 2005. Casinos, bingo parlors, lotteries, betting shops, internet bookmakers, and other establishments are regulated in an effort to prevent compulsive gambling and put in place effective anti-money laundering procedures.
In its reaction, the government stressed how such a course would run counter to generally accepted recommendations made by international organizations and standard-setting bodies. They think that the plan made by the committee may lead to confusion and conflicting duties between the Gambling Commission and banking regulators.
The administration made it clear that it is already actively working to regulate the cryptocurrency market, and that a proposed piece of regulatory legislation was just brought up for discussion in parliament. The government announced, “HM Treasury and the FCA will work with the industry to ensure crypto firms are made fully aware of the standards required for approval at the FSMA gateway,” as they concentrate on establishing industry standards for crypto firms. Additional information will be made accessible as soon as possible to ensure that UK-based crypto companies have easy access to standards for certification.
The committee’s suggestions will be properly taken into account during the regulatory process, and the proposed legislation is projected to go into force by late 2023. In this delicate dance between innovation and regulation, the UK government aims to strike a balance that fosters a thriving crypto industry while safeguarding consumer interests and financial stability.
Related: UK government targets fraudsters with new ban on cold calls for crypto