A UK government committee has suggested cryptocurrencies pose risk for consumers, serve no social purpose, consume large amounts of energy, and are used by criminals for fraud, and as such should not be regulated as financial services.
The Treasury Committee called on May 17 for unbacked crypto assets to be regulated as gambling, given their price volatility and risk of loss.
The MPs acknowledged that technologies underlying crypto assets can be a valuable tool in financial markets when it comes to cross-border transactions and payments in less developed countries. However, they voiced concerns that “regulating consumer crypto trading as a financial service—as proposed by the government—will create a ‘halo’ effect, leading consumers to believe this activity is safe and protected, when it is not.”…