UK officials, who regularly issue warnings about the risks of cryptocurrencies like Bitcoin, think cryptocurrencies should be regulated.
In this context, MPs in the Treasury Committee of the British Parliament published a report on the regulation of cryptocurrencies.
According to Reuters, lawmakers said in this report that Bitcoin, Ethereum and other cryptocurrencies other than stablecoins should be treated and regulated as gambling given the significant risks they pose to consumers.
The report stated that BTC and ETH make up two-thirds of all cryptocurrencies and are not backed by any currency or asset.
The following statements were included in the report:
“Bitcoin, Ethereum and other cryptocurrencies are not backed by any assets.
While this causes volatility in prices, it also leads to the potential for people investing in BTC, ETH and other cryptocurrencies to wipe out all their money.
Therefore, we strongly recommend that the government regulate retail trading and investing in unsupported crypto assets as gambling rather than a financial service, consistent with the 'same risk, same regulatory outcome' principle."
“A large part of the events in 2022 highlighted the risks to consumers of the cryptocurrency industry, which remains the wild west,” said Harriett Baldwin, chairman of the Treasury committee on crypto regulations.
Baldwin also added that effective laws are urgently needed in the UK to protect consumers, otherwise consumers risk losing all their savings in crypto.
Finally, the committee stated that approximately 10% of UK citizens invest in cryptocurrencies and stated that regulations on this issue are important and necessary.
*Not investment advice.