Self-regulatory organization CryptoUK and crypto exchange Kraken UK has slammed a recent report from a panel of British lawmakers that suggested crypto should be regulated in a similar vein to gambling.
In a May 17 report, the Treasury Committee “strongly recommended” that unbacked crypto be regulated as gambling due to concerns over the “significant” consumer risks associated with the asset class, such as price volatility and lack of intrinsic value.
It ultimately called for crypto to be regulated under the principle of “same risk, same regulatory outcome.”
The move has not gone down well with local players, especially given that the United Kingdom is thought to be heading toward becoming a progressive crypto hub.
In a May 17 statement shared with Cointelegraph, CryptoUK argued that “taking this approach will not take into account the nuances of the sector and the real opportunities for inward investment and growth for the UK economy as a whole,” adding that:
“No other global jurisdiction has taken this approach and referencing MiCA in the EU, we need to be taking a bespoke and tailored approach for regulation within the industry to ensure the UK does not become a hostile environment for businesses to be domiciled.”
The organization also suggested that such an approach may ultimately lead to U.K. consumers instead looking…
