Bitcoin and other cryptocurrencies equated with gambling

The United Kingdom wants to equate Bitcoin and other cryptocurrencies with betting and gambling

Bitcoin and other cryptocurrencies equated with gambling

A report by the United Kingdom Treasury Select Committee is positioned against the financial regulation of cryptocurrencies and asks the government to share legislation with bookmakers in the country.

The UK Treasury Select Committee has issued a report urging the government to regulate cryptocurrency trading, equating it to betting and gambling. A trend that seems to be the opposite of the plans announced in terms of cryptocurrency regulation by the UK government.

 

The Treasury Select Committee considers that Bitcoin’s high volatility and the possibility of losing large sums of money define cryptocurrencies as a significant risk for consumers. “As unbacked cryptocurrency retailing looks more like gambling than financial service, MPs call on government to regulate it as such“, the legislators said.

No intrinsic value, enormous price volatility, and no discernible social good, this is how the report has defined cryptocurrency trading. “By betting on these unbacked tokens, consumers should be aware that they stand to lose all their money.“, they have expressed.

According to the study, BTC and ETH, with a combined market capitalization of $737.7 billionaccount for two-thirds of all cryptocurrencies in existence, considering that around 10% of UK adults hold or have held cryptocurrencies, according to UK tax agency HM Revenue & Customs.

Increased regulatory attention on cryptocurrencies after 2022

Events of the past year in the cryptocurrency sector – from the crash of the FTX cryptocurrency exchange to the decline of the Terra stablecoin experiment – have attracted increased scrutiny by regulatorsconcerned about the negative effects on consumers.

In this sense, the Treasury Commission has stated that theConcerned about government proposals to regulate cryptocurrency trading as a financial service. This, according to lawmakers, would create a “halo” effect that would lead people to believe that cryptocurrency trading is safe and secure, when it is not.

In February, the government presented plans to regulate crypto assets and opened its suggestions to a consultation whose deadline closed on April 30. This regulatory framework would potentially allow crypto companies to apply for tailored licenses to operate in the UK, which has historically been a major point of contention for UK companies.

However, the Financial Conduct Authority, which is the de facto regulator of crypto companies under the country’s money-laundering regime, has established a very high bar for the approval of crypto licenses.

for his part in the crypto world, they do not share the conclusions of the Treasury Committee. Blair Halliday, UK managing director of Kraken, a major US exchange, stated: “We fundamentally disagree with the Treasury Select Committee’s conclusion that crypto assets have no intrinsic value”.

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