UK Chancellor of the Exchequer Refuses to Equate Cryptocurrency with Gambling
Date: 2023-07-22 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The head of the British Treasury considered such regulation a violation of the international consensus on cryptocurrencies
The British authorities did not equate cryptocurrency with a form of gambling. Reuters writes about this with reference to the Minister of Financial Services of Great Britain Andrew Griffith. According to him, the British Ministry of Finance is "categorically against" the recommendation of a special committee of the House of Commons to bring cryptocurrencies under the regulation of gambling.
According to Griffith, regulation created for gambling will not eliminate the risks associated with cryptocurrencies, citing the collapse of the cryptocurrency exchange FTX. The head of the British Ministry of Finance added that bringing cryptocurrencies under gambling would fundamentally contradict the recommendations for market regulation agreed in the international arena.
"Therefore, the approach proposed by the committee could lead to inconsistencies with international standards and the approaches of other major jurisdictions, including the EU, and potentially create unclear and duplicative powers between financial regulators and the Gambling Commission," Griffith said.
In May 2023, a special committee of the House of Commons stated that bitcoin (BTC), ether (ETH) and other "unsecured" cryptocurrencies should be regulated, following the example of gambling. The committee feared that the identification of the crypto market with the financial industry would lead to a misunderstanding of the essence of the market. Because of this misconception, consumers may have considered cryptocurrencies to be a safe financial instrument, the committee argued.
Bringing cryptocurrencies under gambling in the UK could significantly limit access to the market, as well as complicate doing business in the country. For example, a British crypto business would have to re-register in the country, but taking into account the requirements of the Gambling Commission. Bitcoin ATMs (there were over 230 in the UK as of 2022) would also be under attack, as the gambling law requires special licensing and vending machines. In addition, such regulation would block access to the market for minors in the UK.
