UK Wants Crypto Trading Regulated Like Gambling – Is It Fair?

• The United Kingdom is suggesting that crypto investing should be regulated in the same way as gambling.
• U.K. authorities believe that like gambling, investing in crypto can be quite addictive and thus traders won’t always know when to stop.
• A special committee under the Treasury has released a report claiming that crypto and blockchain are part of financial innovations that cannot – and should not – be governed under the Financial Conduct Authority (FCA).

The United Kingdom Wants Gambling Laws To Apply To Crypto Trading

The United Kingdom is suggesting that crypto investing should be regulated in the same way as gambling activities due to its high volatility and potential for addiction. U.K. authorities believe that traders won’t always know when to stop, so necessary rules must be put in place to protect people from themselves. Furthermore, a special committee under the Treasury has released a report claiming that crypto and blockchain are part of financial innovations that cannot – and should not – be governed under the Financial Conduct Authority (FCA).

Crypto Investing Is A Gamble

Is investing in crypto equivalent to gambling? Whenever you buy bitcoin, Ethereum, or some other digital asset, you’re taking a chance… A chance that it could go down or up. You don’t know where it will be – just like at a blackjack table where one could win big or lose it all in minutes. In this sense, crypto investing is a gamble and this is how the United Kingdom sees it too.

Harriett Baldwin’s Statements

Conservative MP Harriett Baldwin explained why she believes regulation for cryptocurrency trading is needed: “Effective regulation is clearly needed to protect consumers from harm, as well as to support productive innovation in the U.K.’s financial services industry.“ She also noted: „By betting on these unbacked ‚tokens,‘ consumers should be aware that all their money could be lost.“

The Special Committee Report Under The Treasury

The special committee under the Treasury has released a report saying cryptocurrencies like bitcoin more closely resemble gambling than a financial service and therefore it should not fall into FCA regulations but instead have separate laws governing its trading activity similar to those used for gambling activities.

Conclusion

Although nothing regarding new regulations has been set in stone yet, many analysts believe they will eventually influence future cryptocurrency regulations within both the United Kingdom and European Union if passed by Parliament – which may have mixed reactions from everyone involved with cryptocurrencies either directly or indirectly