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Crypto should not be treated as gambling says MP

  • November 18, 2023
  • 1 min read
Crypto should not be treated as gambling says MP

Economic secretary to the Treasury, Andrew Griffith, said that equating crypto assets as a form of gambling would create the risk of misalignment with global approaches and standards, including from major economies including the European Union. Griffith was responding to a Treasury Committee report on regulations for crypto. He said that it would potentially create unclear as well as overlapping mandates between financial regulators and the Gambling Commission.

In the statement, Griffith said that regulating retail crypto trading in the same way as gambling would put the country at odds with the internationally agreed recommendations from various organisations and standard-setting bodies worldwide. These include the International Organization of Securities Commissions (IOSCO)1 and the G20 Financial Stability Board (FSB).

“HM Treasury firmly disagrees with the Committee’s recommendation to regulate “retail trading and investment activity in unbacked crypto assets as gambling rather than as a financial service,” he said.

A system of gambling regulation, Griffith says, may struggle to successfully mitigate some of the critical risks associated with cryptocurrency assets including market manipulation, inadequate prudential arrangements, and deficiencies in key financial risk management practices.

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