- In May of 2023, a cross-party Committee of MPs recommended the new legislation.
- Andrew Griffith said that such regulation would be in violation of international norms.
The United Kingdom’s HM Treasury “firmly disagrees” with a suggestion by the House of Commons Treasury Committee to label cryptocurrency trading as gambling. In May of 2023, a cross-party Committee of MPs recommended the new legislation.
In its formal report, the Committee noted that crypto assets had “no intrinsic value” and warned against regulating them as financial assets, which may create a “halo effect” and trick consumers into thinking that this activity is safer or more protected than it really is.
Stringent Regulations Underway
Furthermore, on July 19, in response to the Committee’s concerns, Economic Secretary to the Treasury Andrew Griffith said that such regulation would be in violation of international norms. Also, it could cause crypto asset activity to move offshore, and wouldn’t address risks like market manipulation or improper disclosures.
Moreover, the dangers of unbacked crypto assets must be addressed. And the conditions for safe innovation must be established, the report stated, and this is best done via a financial services regulatory framework. Recent developments in crypto laws were also addressed in the official statement.
The government stated:
“HM Treasury and the FCA [Financial Conduct Authority] will work with the industry to ensure crypto firms are made fully aware of the standards required for approval at the FSMA gateway. Further communications will be provided in due course to ensure standards for approval are clearly available to crypto firms operating in the UK.“
The Financial Services and Markets Bill (FSMB), which seeks to legislate cryptocurrencies and stablecoins, has made progress toward becoming legislation. According to the government authorities, the FSMB will be in effect by late 2023.
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