The UK government has rejected a recommendation from the House of Commons Treasury Committee to treat cryptocurrency trading as a form of gambling. Andrew Griffith MP, Economic Secretary to the Treasury, argued that such a policy would contradict recommendations agreed by international organizations and standards bodies.
Recommendation Clashes with International Standards
In May, the House of Commons Treasury Committee, led by Conservative MP Harriet Baldwin, released its report on crypto assets which included a recommendation to treat investment in cryptocurrencies like gambling due to the high volatility associated with crypto values and the possibility for consumers to lose significant sums of money. The Committee made the assessment based on the principle of “same risk, same regulatory outcome”.
In its response, the Treasury firmly disagreed with the assessment, saying it would not be in line with the standards and approaches adopted by major jurisdictions, including the EU, and could jeopardize ongoing cooperation between the UK and other countries.
Gambling Regulation Would Fail to Properly Mitigate Crypto Risks
Griffith added that if the recommendation were to be followed, gambling regulation could not properly mitigate the critical risks associated with crypto trading. As such, crypto will be regulated as a financial service, not as a gambling product.
