Britain declines to classify cryptocurrencies as gambling

The British government has rejected the idea of regulating cryptocurrencies as gambling instruments. This was stated by the Treasury chief Andrew Griffith.

With the corresponding proposal put forward in May 2023. They argued that retail trading of digital assets is more akin to betting on sports than to investment. Even major cryptocurrencies, such as Bitcoin and Ethereum, “have no intrinsic value and do not serve any useful social purpose.”

According to Griffith, the government “is firmly opposed” to such recommendations. Regulating the sector along gambling lines would not address the risks investors faced during the collapse of the FTX exchange.

“The Gambling Commission has extensive experience in protecting consumers and the broader public […]. However, supervision of financial risks that are similar to those that exist in financial markets is not within the Commission’s remit,” the document says.

Earlier, Bloomberg reported on the tightening of requirements for crypto firms in the United Kingdom. According to the journalists, local regulators began denying applications, blocking accounts, and requesting more information regarding client transactions.

In March 2023, authorities presented a three-year “Economic Crime Plan” that provides for measures to strengthen countermeasures against the use of cryptocurrencies for criminal purposes.

Prior to that, the Treasury unveiled plans to implement oversight of Bitcoin exchanges.

In July, the Financial Conduct Authority unveiled new advertising requirements for cryptocurrencies.