A crypto advocacy group has criticized the U.K. Parliament Treasury Select Committee’s recommendation to regulate cryptocurrency trading as gambling. The Committee compared crypto trading to gambling, stating that it is addictive and traders can lose all their money. They urged the government to refrain from investing taxpayers’ money in virtual assets until their benefits are proven.
The Committee also criticized the government’s attempt to create a non-fungible token (NFT) through the Royal Mint, which was later scrapped due to a lack of demand. However, they acknowledged that blockchain technology could benefit the financial services industry, especially in improving payment efficiency and reducing costs.
In response, the pro-crypto advocacy group, CryptoUK, disagreed with the Committee’s conclusion, calling it “unhelpful, false, fundamentally flawed and unsubstantiated.” They argued that the Committee failed to understand the true nature, purpose, and potential of the crypto industry. Additionally, CryptoUK questioned whether the government was willing to overlook the substantial tax income generated from crypto asset gains.
Overall, the Committee’s recommendations to regulate crypto trading as gambling has been met with opposition from the crypto advocacy group, which argues that the industry has greater value and potential.