UK Rejects Labelling Crypto Trading As Gambling
The UK government has opposed a cross-party panel of British legislators’ demand to regulate ‘unbacked’ digital assets like Bitcoin and Ether as gambling. The executive arm contended that such treatment violates worldwide standards advocated by organisations such as the G20 Financial Stability Board.
According to a statement made by the UK Parliament on Friday, Andrew Griffith MP, the Economic Secretary to the HM Treasury, expressed the government’s objection to the idea in a letter received by the House of Commons last Friday.
Griffith stated in the letter that international norms for crypto regulation are founded on the’same activity, same risk, same regulatory consequence’ premise, which necessitates extending restrictions imposed on traditional financial institutions such as banks to digital asset enterprises.
Furthermore, the Economic Secretary maintained that supervising cryptocurrency trading as gambling could fail to prevent many of the risks, including market manipulation, that are associated with digital asset trading.
(With inputs from Shikha Singh)
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