The UK’s parliamentary committee proposed the idea to treat all the crypto assets as a gambling asset, instead of a financial instrument.
Cryptocurrencies & Blockchain Technology adoption is surging rapidly in the tech & finance world, thanks to the high-level data processing potential of the blockchain protocols. Because of the highly volatile nature of crypto assets’ trade prices, crypto haters usually consider it as gambling or speculative asset.
Recently a 28-page document was put under the collaborative support of several parties in the UK’s parliamentary committee. The document suggests considering all cryptocurrencies as gambling assets & also regulating them under gambling laws.
Harriett Baldwin, the member of Parliament and Chair of the Treasury Committee & one of the backers of this document, said:
“With no intrinsic value, huge price volatility and no discernible social good, consumer trading of cryptocurrencies like bitcoin more closely resembles gambling than a financial service, and should be regulated as such.”
It is worth it to note that all the stablecoins will be outside of the domain of this document. According to the lawmakers, Bitcoin & Ethereum-like crypto assets are unbacked & there is no value in these assets & also we can’t treat these crypto as a investment or financial assets. They claimed that investment in crypto assets is similar to sports gambling activities, so it is better to consider Cryptocurrencies as a gambling asset & also regulate under the gambling laws.
Many people noted that UK lawmakers are looking toward crypto assets as a highly risky investment tool because of the several bankruptcies & failures of crypto projects between 2022 to Q1 2023.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.