The UK Treasury Committee issued a report on May 17, urging the government to regulate digital currencies as betting instruments rather than investment asset class.
As per the recent report produced by The UK House of Commons Treasury Committee, retail crypto trading nowadays has become more of sports betting than investing and should be regulated the same way.
The report, set up by a panel of British Lawmakers, contends that even blue-chip digital currencies like Bitcoin (BTC) and Ethereum (ETH) “have no underlying worth and fill no valuable social need” and hence ought to be managed by the government authority as betting instruments.
The arrival of the report on May 17, follows a February update in which the public authority framed its arrangements to “vigorously govern crypto asset activities.” Recently, advocates of established banking companies worried that the UK’s proposals to govern digital currency will legitimise a risky sector.
The Treasury Committee expresses similar concerns in its report, stating that the price volatility of digital currency poses a severe risk for small investors.
“The Board of trustees is likewise worried that controlling user crypto trading as a monetary service, as proposed by the Public authority, will make a ‘radiance’ impact, persuading customers to think this action is protected and safeguarded, when it isn’t,” as per a synopsis of report.
CryptoUK dissatisfied with the report
On the other hand, CryptoUK, a trade organisation representing the cryptocurrency sector, is dissatisfied with the report on cryptocurrency stating it as a gambling instrument.
“We are both worried and frustrated by these cases which are pointless, bogus, essentially imperfect and unverified,” said Ian Taylor, Board Counsel at CryptoUK. “The claim fails to accurately reflect the real essence, purpose and capability of the crypto sector.”
The House of Commons Committee group admits that the fundamental blockchain innovation, rather than cryptocurrency itself, may provide few advantages to the monetary administrations sector.
“With no natural worth, immense price instability and no perceivable social great, user exchanging of digital currencies in the forms of money like Bitcoin more intently looks like betting than a monetary help, and ought to be controlled as such,” remarked Harriet Baldwin, the chair of the Treasury Committee.
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