The UK government does not plan to consider cryptocurrency trading a form of gambling. [Image: Shutterstock.com]
The UK government has no plans to classify cryptocurrency trading as a form of gambling for regulatory purposes.
Closer to gambling than financial service.
A report by the House of Commons Treasury Committee advised that the characteristics of cryptocurrency trading are “more akin to gambling than a financial service.” However, the Minister for Economics to the Exchequer Andrew Griffiths stated this The Treasury “strongly disagrees” with this view.
Explaining the reasons for his position, Griffiths said that the gambling-based approach could lead to misalignment with norms in other countries towards cryptocurrencies, as well as potentially blurring the lines between gambling houses and financial regulators.
He also argued that it would do little to deal with the unique risks associated with this form of trading, while also pointing out that the UK Gambling Commission does not have the necessary expertise to deal with cryptocurrencies. The government’s view is that some form of financial services regulatory framework would be the most appropriate way to approach cryptocurrency trading.
