The UK Parliament has proposed equating cryptocurrencies with gambling

The UK Parliament has proposed equating cryptocurrencies with gambling

Cryptocurrencies like Bitcoin and Ethereum are not backed by underlying assets, meaning they lack “true value”. Therefore, trading in digital assets should be regulated as gambling, said the UK House of Commons Finance Committee.

    Image Source: Kanchanara /

Image Source: Kanchanara /

Cryptocurrencies are characterized by increased volatility and the likelihood of losing large amounts of money to investors, meaning they pose a significant risk to consumers, according to the UK Parliament. In other words, cryptocurrency trading is more like gambling and should therefore be regulated accordingly. When wagering on these unsecured “tokens”, the consumer must be aware that they are running the risk of losing all of their money.

Regulation of this industry needs to be effective, both to protect consumers from potential threats and to support innovation in the financial services available in the UK. At the same time, the committee recommended that the government take a balanced approach to investing in cryptocurrency technologies and not allow public money to be spent without a clear strategy – innovation should not be promoted for the sake of innovation.

The finance committee also expressed concern about the government’s proposal to regulate retail, i.e. consumer trading in cryptocurrencies as a financial service. This positioning of digital assets can create a ‘halo effect’, ie lead people to believe that cryptocurrency trading is safe, but this is not the case.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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