UK Economic Secretary rejects regulating crypto as gambling, advocates for financial services framework

UK Treasury Secretary Andrew Griffiths has rejected a recommendation by the Parliamentary Finance Select Committee to regulate cryptocurrency trading as gambling, according to a statement. published July 20th.

In a May report, the UK Treasury Commission acknowledged that blockchain technology could be beneficial to the financial services industry. However, the magazine compared cryptocurrency investing and trading to gambling and suggested that the industry should be regulated as such.

Griffiths argued that adopting the congressional committee’s recommendations would clash with international regulators and would not adequately address the risks associated with the industry.

“Therefore, the approach proposed by the Commission risks creating inconsistencies with international standards and approaches from other major jurisdictions, including the EU, and creates inconsistencies between financial regulators and the Gambling Commission. It can create distinct and overlapping powers.”

He noted that international bodies such as the International Organization of Securities Commissions (IOSCO) and the G20 Financial Stability Board (FSB) have introduced recommendations to appropriately address regulatory risks in the industry. He explained:

“[The international bodies recommendation are] Based on the principle of “same activities, same risks, same regulatory consequences”, cryptocurrency activities that perform similar functions and pose similar risks to activities in the traditional financial system (e.g. operating trading platforms or providing services). offer, etc.). custody services) are subject to regulations that guarantee equivalent results. “

“The cryptocurrency industry would benefit more if a proper financial services regulatory framework were developed to address the risks of unbacked crypto assets,” Griffiths said. [create] Conditions for safe innovation. “

A government official, meanwhile, said authorities are taking proactive steps to ensure that consumers are not misinformed about cryptocurrencies. Griffiths pointed out that the government has a financial facilitation regulatory regime specifically for crypto assets, adding that there are proposals to “ensure that consumers have access to accurate information when making investment decisions.” rice field.

Earlier this month, the UK’s Financial Conduct Authority (FCA) issued a warning to cryptocurrency companies and advertisers, urging them to comply with a financial promotion regime due to be introduced to the industry by October.

The post-British economy secretary has refused to regulate cryptocurrencies as gambling, and proponents of a financial services framework first appeared on CryptoSlate.

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