The U.K. government has rejected plans from lawmakers to regulate crypto like gambling, citing existing proposals that better address the risks posed by events such as the FTX collapse. In a document published Thursday, the Treasury Committee expressed concern that the government’s plans to apply rules similar to those for traditional finance to crypto treats the sector too softly.
In response, the government said, The Government firmly disagrees with the Committee’s recommendation concerning retail crypto trading and investment. A system of gambling regulation, in isolation, would be unlikely to address these risk factors. The government also noted that such a departure from their intended approach, which follows recommendations from global standard-setting bodies, would merely push crypto offshore.
In 2022, Rishi Sunak, then finance minister and now prime minister, said he wanted to make the U.K. a crypto hub, but the sector has warned its rulemaking is trailing behind rival jurisdictions such as the European Union.