Regulating Crypto in the UK
– Andrew Griffith, economic secretary to the UK Treasury, disagrees with equating crypto assets to gambling, as it could create confusion and overlapping regulations.
– Regulating retail crypto trading as gambling would go against global recommendations from organizations like IOSCO and the FSB.
– Griffith believes that a gambling regulatory framework may not effectively address the risks associated with crypto assets.
– He supports a financial services regulatory framework to mitigate risks and promote safe innovation in the crypto industry.
– The UK government is introducing a dedicated financial promotions regulatory regime for crypto assets, set to come into effect by late 2023.
Regulation and Resistance
– Prime Minister Rishi Sunak aims to position the UK as a crypto hub, but faces resistance from lawmakers.
– Bank of England Governor Andrew Bailey has argued that crypto assets have no intrinsic value.
– Harriett Baldwin, chair of the Treasury Committee, referred to crypto assets as a “wild west” and highlighted consumer risks.
– Griffith’s statement is in response to a report recommending regulation of retail crypto trading as gambling.
– CryptoUK, a self-regulatory trade association, also opposes treating crypto assets as gambling.
Hot Take
The UK Treasury disagrees with regulating crypto assets as gambling and supports a financial services regulatory framework instead. The government aims to foster safe innovation in the crypto industry while aligning with international standards. However, resistance from lawmakers and concerns about consumer risks pose challenges to the country’s crypto ambitions. The debate over crypto regulation in the UK continues to unfold.
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