Andrew
Griffith, Britain’s financial services minister, has made it clear that handling
cryptocurrencies as a form of gambling would orchestrate disagreements with
global and European Union regulators and fail to effectively address the risks
associated with the sector.
The
Parliament’s Treasury Select Committee had earlier proposed regulating Bitcoin,
Ether and other unbacked cryptocurrencies as gambling, in view of the palpable
risks they pose to consumers.
Britain is
positioning itself as a global hub for crypto and blockchain technology and has
already started working on establishing rules for the sector.
The EU has
already approved the world’s first comprehensive rules for trading crypto
assets, which is set to be effective from mid-2024.
The UK’s
gambling watchdog has confirmed that transacting with cryptocurrencies is not
classified as gambling under the UK’s Gambling Act, adding that any possible
changes to the act would be the government’s responsibility.
Britain is
preparing to regulate stablecoins, and has differentiated them from unbacked cryptocurrencies,
which are usually more volatile.
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