UK lawmakers considering cryptocurrencies to be regulated under the gambling rules
The lawmakers also advocate for an international collaborative approach to regulation, calling on the UK government to work with global partners to develop unified standards
The UK lawmakers have called for cryptocurrencies to be regulated as gambling, citing concerns about the risks involved and the potential harm to individuals. The Parliament’s Treasury committee on crypto-assets argues that cryptocurrencies share characteristics with gambling due to their speculative nature and the potential for significant financial losses. As a result, they propose a redo of the regulatory framework to safeguard consumers in the evolving digital landscape.
The report emphasizes the need for comprehensive measures to address the risks associated with cryptocurrency investments. One of the key recommendations is to license and regulate cryptocurrency exchanges under the purview of the UK Gambling Commission, much like traditional gambling platforms. By imposing strict regulations on exchanges, lawmakers hope to enhance consumer protection and weed out fraudulent operators.
Additionally, the report suggests tightening advertising standards to curb misleading marketing practices that often target vulnerable individuals. It recommends banning endorsements of cryptocurrencies by celebrities and influencers, as these endorsements can create a false sense of security and credibility. To further safeguard the public, the report suggests launching a widespread awareness campaign to educate individuals about the potential risks involved in crypto investments.
The lawmakers also advocate for an international collaborative approach to regulation, calling on the UK government to work with global partners to develop unified standards. They propose bolstering the powers and resources of the Financial Conduct Authority (FCA) to effectively regulate the crypto market, ensuring a coordinated and robust oversight framework.
By proposing stricter regulations, licensing requirements, and improved consumer awareness, UK lawmakers aim to strike a balance between embracing innovation and protecting individuals from potential financial harm in the fast-paced world of digital assets.
