UK Lawmaker Group Clashes With Treasury Over Treating Unbacked Crypto as Gambling

05/17 02:25

According to Coindesk, investing in unbacked digital assets like bitcoin (BTC) and ether (ETH) resembles gambling and should be regulated as such, a cross-party lawmaker group in the U.K. has said. But the government is sticking by its plans to regulate them as financial services. The Treasury Committee is worried the government’s proposal “will create a 'halo' effect, leading consumers to believe this activity is safe and protected, when it is not,” it said in a Wednesday announcement marking the publication of its report on crypto. The committee kicked off an inquiry into the industry in July to gather views from stakeholders and regulators. The U.K. government recently asked industry members to share feedback on its proposed rules for the local crypto industry. In its consultation, the government said it wanted to regulate crypto by extending existing financial markets rules to create an authorization regime for digital asset service providers. A new bill going through Parliament also seeks to supervise crypto as regulated financial activities.

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