• UK Lawmaker Andrew Griffith has stated that crypto assets should not be regulated as gambling.
• He believes that such a move would create misalignment with international standards and other major jurisdictions, including the European Union.
• Griffith asserted that a gambling-style regulation system might not successfully mitigate the risks associated with crypto assets.
UK Lawmaker Opposes Crypto Gambling Regulation
Andrew Griffith, economic secretary to the UK Treasury, said that equating crypto assets as a form of gambling would risk creating misalignment with international standards and approaches from other major jurisdictions, including the European Union.
Treasury Committee Report on Regulating Crypto
In response to a Treasury Committee’s report on regulating crypto, Griffith said that such a move would potentially create unclear and overlapping mandates between financial regulators and the Gambling Commission.
Implications of Gambling-Style Regulation
Griffith argued that regulating retail crypto trading in the same way it oversees gambling would put Britain at odds with globally agreed recommendations from international organizations and standard-setting bodies, including the International Organization of Securities Commissions (IOSCO)1 and the G20 Financial Stability Board (FSB). Additionally, he claimed that a system of gambling regulation might not be able to successfully mitigate many of the critical risks associated with crypto assets.
Alternatives for Regulating Crypto Assets
Griffith suggested alternative options for regulating crypto assets in order to address many of these risks more effectively. These include strengthening existing regulatory regimes or introducing new ones tailored specifically towards cryptocurrencies.
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“HM Treasury Firmly Disagrees”