Efforts to regulate cryptocurrency in the United Kingdom have taken a new turn. The U.K. government has rejected a proposal by the Treasury Committee to regulate cryptocurrency in a similar way to gambling. The U.K. government made its stand known after a panel of British legislators submitted that crypto retail trading should fall under the same regulatory provision as gambling. More so, the lawmakers argued that crypto investment is in line with the principle of “same risk, same regulatory outcome.”
Meanwhile, in response to the submission, the United Kingdom government said it is strongly against the recommendation of the lawmakers. The U.K. financial services minister Andrew Griffith while responding to the proposal today, echoed the position of the government. The minister said it will be unusual for the U.K. government to embrace such a recommendation as it is against the global definition of cryptocurrency.
Additionally, the British government cited how the proposal can trigger a “clear and overlapping” oversight function between financial regulators and the gambling commission. Instead, the government revealed how it is already making efforts to regulate the crypto landscape in the United Kingdom. The British government went on to reveal that there is a legislation before the parliament regarding the regulation of crypto.
The British government hinted that the legislation could come into effect by late 2023. Furthermore, the UK government said the HM Treasury and the Financial Conduct Authority will collaborate to educate crypto firms about the required standard to obtain regulatory approval. Also, the British government promised to provide more information to ensure that crypto firms understand the required standard of operation in the United Kingdom. However, the government admitted that it will consider the proposal of the committee.
Global efforts on crypto regulation
Lately, efforts to regulate crypto have attained a new level on the global scene. The recent revelation by the British government indicated that soon the crypto landscape in the country will be regulated before the end of 2023. As it stands, cryptocurrency seems to be finding its feet in key markets. Recently, the European Union approved its Markets in Crypto Assets (MiCA) to regulate the digital assets market.
Likewise, we’ve witnessed positive efforts to regulate the crypto space in regions like Hong Kong and Namibia. Crypto enthusiasts in the United States are beaming with confidence about the future of the industry in the country. Last week, the age-long lawsuit between Ripple Inc and the United States Securities and Exchange Commission finally came to an end. The verdict of the lawsuit provided that XRP isn’t a security. The verdict triggered hope and confidence in a market that is struggling to survive under the tough clampdown of the SEC on crypto exchanges.