Crypto: Not a game of chance, according to the British Government

In May, several British MPs submitted a bill, falling within the framework of crypto regulation. According to them, the uncertainty around the value of digital assets is such that they are seen as gambling. This, while a good part of the legislators see them as a financial service. This idea gave rise to lively exchanges between the various stakeholders.

Avoid discrepancies with global standards

On Thursday, the UK Treasury rejected a recommendation to consider crypto transactions as gambling. The proposal comes from a cross-party committee of MPs. Its purpose is to respond to specific concerns. These relate to the perceived lack of intrinsic value of crypto-assets and the potential dangers of consumer deception.

Andrew Griffith, the Economic Secretary of the Treasury, explained the reasons for this rejection. “Classifying crypto exchanges as gambling would result in discrepancies with global standards (…)” according to him.

In addition, the measure could cause “a relocation of activities related to cryptos”. This, without settling the question of the risks of “market manipulation and dissemination ofinadequate information related to crypto exchanges”.

The government thus opts for financial assets as the category in which cryptos must be placed. He considers that naming cryptos as financial assets offers a more comprehensive approach. This, while being aligned at the international level to regulate the market.

In fact, the Kingdom wants to find a balance between promoting innovation and safeguarding the interests of stakeholders. In the same vein as this denial, Andrew Griffith highlighted the progress made in crypto regulation.

Among these are measures against misleading advertising. Added to these is the imminent promulgation of the Financial Services and Markets Bill (FSMB). As a reminder, the text will provide a proper regulatory framework for cryptos. The 340-plus-page document is expected to come into effect by the end of the year.