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UK Finance Ministry Rejects Treating Cryptocurrencies as Gambling Despite Committee’s Recommendation

CryptoUK Finance Ministry Rejects Treating Cryptocurrencies as Gambling Despite Committee's Recommendation

After the UK parliament’s Treasury Committee recommended treating cryptocurrencies like gambling, the British finance ministry, led by Andrew Griffith, has rejected this suggestion. Griffith stated that the ministry “firmly disagrees” with the recommendation to classify retail trading and investing in unbacked crypto assets as gambling.

Griffith argued that treating cryptocurrencies as gambling would not effectively address the risks associated with the crypto market, including issues like the failure of major exchanges. He also highlighted that such an approach contradicts globally agreed-upon recommendations from international organizations like the International Organization of Securities Commissions and the G20 Financial Stability Board.

The Treasury Committee had initially proposed regulating cryptocurrencies as gambling due to concerns about their significant risks and potential use in fraudulent activities. This stance was met with criticism from the crypto industry, including CryptoUK, a self-regulatory trade association, which called the committee’s statements “unhelpful, false, fundamentally flawed, and unsubstantiated.”

Notably, the UK is not alone in considering cryptocurrency trading akin to gambling. ECB executive Fabio Panetta and the Reserve Bank of India’s Governor Shaktikanta Das have also expressed similar sentiments due to the speculative nature of digital assets.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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