UK Government responds to the Treasury Committee’s report on regulating cryptoassets
The UK Treasury disagrees with the Committee’s recommendation to regulate retail trading and investment activity in unbacked cryptoassets as gambling rather than as a financial service.
The UK Treasury has responded to the Treasury Committee’s report on regulating cryptocurrency industry, stating that while it recognizes the need for robust regulation, it disagrees with the recommendation to regulate retail trading and investment in unbacked cryptoassets as gambling.
The Treasury argues that such an approach would go against globally agreed recommendations and could create misalignment with international standards. Instead, the Treasury believes that a financial services regulatory framework is more appropriate for addressing the risks of unbacked cryptoassets and ensuring safe innovation.
The respond states that the UK Government has already taken concrete action, introducing a dedicated financial promotions regulatory regime for cryptoassets, and proposing a robust issuance disclosure regime to ensure consumers have access to accurate information. The Treasury also highlights the risks associated with market manipulation and inadequate risk management practices in the cryptoasset industry.