Arab Press

بالشعب و للشعب
Saturday, Jul 12, 2025

Crypto trading should be treated like a type of gambling, influential MPs say

Crypto trading should be treated like a type of gambling, influential MPs say

The Treasury Committee made the recommendation while describing digital currencies as having "no intrinsic value and no useful social purpose".
An influential panel of MPs has called on the government to regulate consumer crypto trading and speculation as a type of gambling.

The cross-party Treasury Committee claimed digital currencies such as Bitcoin and Ether have "no intrinsic value and no useful social purpose" - and as well as consuming large amounts of energy, they are often used by criminals for scams.

It comes after the government announced proposals in February to regulate the crypto industry by bringing it under financial services law.

But MPs said a better approach would be to recognise how speculation in unbacked cryptoassets - like Bitcoin - "more closely resembles gambling than a financial service".

It recommended that safeguarding rules which oversee the likes of lotteries, betting firms and casinos should apply instead.

Around 10% of UK adults have speculated in cryptoassets, according to HM Revenue and Customs.

The committee's new report warned digital currencies are a "significant risk" due to "huge" price volatility, with the potential for customers to lose everything they invest.

It said there was evidence that addictions to cryptocurrency speculation were on the rise - and warned there are limited controls currently in place to protect vulnerable consumers.

MPs said they were concerned that bringing the industry under financial service regulation "will create a 'halo' effect that leads consumers to believe that this activity is safer than it is, or protected when it is not".

"We therefore strongly recommend that the government regulates retail trading and investment activity in unbacked cryptoassets as gambling rather than as a financial service, consistent with its stated principle of 'same risk, same regulatory outcome,'" the report added.

A 'Wild West' industry

It comes after a 2018 report by the committee described the cryptocurrency industry as a "Wild West" - with MPs saying nothing in their subsequent enquiries had moved them to alter that verdict.

Following the new report, committee chair, Conservative MP Harriett Baldwin, said: "Effective regulation is clearly needed to protect consumers from harm, as well as to support productive innovation in the UK's financial services industry.

"However, 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."

The MPs said they still felt there was potential in the technology - such as by improving the efficiency and costs of making payments - and advised the government to take a "balanced approach" in supporting innovation.

The committee added it was separately considering the potential role of digital currencies backed by central banks.

Meanwhile its report also criticised the government's attempt in April 2022 to launch a non-fungible token (NFT) - a type of cryptocurrency asset - through the Royal Mint. The plan was dropped earlier this year following a review.

MPs said the government "should seek to avoid expending public resources on supporting cryptoasset activities without a clear, beneficial use case".

Crypto 'offers opportunities'

It comes as the government considers responses to a consultation into its regulation proposals.

A Treasury spokesperson indicated ministers would likely reject the committee's recommendation.

They told Sky News: "Risks posed by crypto are typical of those that exist in traditional financial services and it's financial services regulation - rather than gambling regulation - that has the track record in mitigating them.

"Crypto offers opportunities but we are taking an agile approach to robustly regulating the market, addressing the most pressing risks first in a way that promotes innovation."

The report comes amid growing pressure on governments around the world to better regulate the industry, heightened by the sudden bankruptcy of crypto platform FTX in November.

Some 80,000 UK-based customers were impacted by the collapse, and one British investor was left with a £1m hole in his finances.

The European Union this week approved tougher cryptoasset rules - including new powers to ban exchanges that fail to protect consumers.

The International Organisation of Securities Commissions (IOSCO), whose members include regulators in the US and UK, said it will also soon announce proposals for the first ever set of global rules covering crypto trading.
Comments

Oh ya 2 year ago
Ot should be treated like the stock market. Pay your money take your chances. Goverments are slowong boiling the frog, getting the sheeple ready for THEIR central bank digital currency. Once you sign up for that your freedom will end, it is the mark of the beast and unfortunately many brain dead people will sign up for this. People have been so dumbed down by the education system and chemicals in there food they will stand on the train tracks and wonder what the bright light is approaching

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×