The financial
services minister stated that treating crypto assets as gambling would push
them at odds with EU and Global regulators.
The global digital asset market registered a piece of
positive news on Thursday from one of the biggest economies. The British
government stated that it has rejected lawmaker calls to control the crypto
industry as a form of gambling. The authority mentioned that it would be
regulated just like any other financial service.
British Finance Ministry Rejects Lawmaker Calls
As per the report, the British Finance Ministry has shown
firm disagreement with the parliament’s Treasury Committee recommendations. The
committee asked the ministry to regulate retail trading and investment
activities in unbacked cryptocurrencies as gambling and not as financial
services.
Andrew Griffith, Britain’s financial services minister
highlighted that treating crypto assets as gambling would push them at odds
with European Union and Global regulators. However, this will also fail the
attempts to mitigate risks from the crypto sector.
The parliament’s Treasury Select Committee has suggested to
the ministry that Bitcoin (BTC), Ethereum (ETH), and other major unbacked
cryptos need to be regulated. British lawmakers seem to be worried that placing
the crypto sector under the lens of financial services. It is anticipated that
this move will lead the users to think that it is safer than it is and can lose
all of their money.
Is Crypto Market A Gamble?
Griffith stated a system of gambling regulation would not
address the risk incorporated as of the collapse of FTX. However, this will
also run some different regulations to globally accepted recommendations from
the biggest regulators. This includes guidance given by the International
Organization of Securities Commissions (IOSCO) and the G20 Financial Stability
Board (FSB).
The global crypto market is on a streak of printing green
indexes as it cumulatively registered a surge of 1.17% on Thursday. Its total
market cap stands at over $1.22 trillion.
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