The UK government has rejected the idea of regulating cryptocurrencies as gambling tools. This was stated by the head Treasury Andrew Griffith.
The relevant proposal was made by the departmental committee in May 2023. They felt that retailing digital assets is more like sports betting than investment. Even major cryptocurrencies like Bitcoin and Ethereum “have no intrinsic value and serve no useful social purpose.”
According to Griffith, the government “strongly disagrees” with such recommendations. Gambling-style regulation of the sector will not eliminate the risks that investors faced with the collapse of the FTX exchange.
“The Gambling Commission has a long track record of protecting consumers and the general public […]. However, the supervision of financial risks, which are similar to those that exist in the financial markets, is not within the competence of the Commission,” the document says.
Earlier, Bloomberg reported on the tightening of requirements for crypto firms in the United Kingdom. According to journalists, local regulators began to reject applications, block accounts and request more information regarding client transactions.
In March 2023, the authorities introduced a three-year “Plan to Combat Economic Crime”, which provides for measures to strengthen the fight against the use of cryptocurrencies for criminal purposes.
Prior to this, the Treasury unveiled plans to introduce oversight of bitcoin exchanges.
Recall that in July, the UK Financial Conduct Authority introduced new requirements for advertising cryptocurrencies.
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