The cryptocurrency market is a relatively new phenomenon that has come under government scrutiny around the world. As such, the UK government recently rejected lawmakers’ plans to regulate cryptocurrencies by comparing them to gambling. However, they said that the current proposals address the risks associated with the cryptocurrency market more deeply.
It all started in May when the House of Commons Treasury Committee expressed concern that the Government was planning to introduce rules broadly similar to those of traditional finance to the crypto sector too leniently. They expressed fears that this could lead people to think that investing in Bitcoin or Ethereum is safe.
At the moment, casinos are strictly regulated in the UK, which can be found at www.topcadcasinos.net. Although they give free spins and welcome players from different countries, the UK government bans sites that do not operate under a license. The same was proposed to be applied to cryptocurrencies.
The UK government’s decision has sparked a heated debate in society and among experts. Many believe that cryptocurrencies need stricter regulation to protect investors from potential risks. At the same time, others argue that excessive regulation could limit innovation and development of the sector.
Why the UK Government has opposed the passage of the bill
The Government’s main argument is that the current system of gambling regulation is not designed to address risk factors such as the confiscation of customer funds envisioned on the cryptocurrency exchange FTX or to address insider trading and market manipulation issues covered by traditional financial regulation. In the Government’s view, the recommendation to rely on a system of regulation of the gambling industry is a radical departure from the intended approach and is inconsistent with the recommendations of international financial standards endorsed by the leaders of the world’s top 20 countries.
The statement has sparked numerous discussions, and many experts and public figures have already expressed their views. One camp believes that cryptocurrencies do require strict regulation to prevent potential risks and unauthorized activities. At the same time, others argue that too “tightened nuts” will hinder innovation and further development of this promising sector.
