In the dynamic world of cryptocurrencies, innovation meets tradition and nowhere is this more evident than in the recent discussion in the UK Finance Committee. In a bold move, the committee has proposed regulating crypto trading not as a financial service but as gambling. This proposal, which has the potential to rock the entire crypto industry, raises a plethora of questions and could fundamentally change the way we look at cryptocurrencies. Now, learn the details of this development and discover what it could mean for the future of digital currencies.
UK Parliament sees cryptocurrency trading as gambling
The UK Parliament’s Treasury Committee recommended regulating cryptocurrency trading as gambling in a new report today. This Position stands in stark contrast to government plans to regulate cryptocurrency activity as a financial service.
MEPs argue that cryptocurrencies, especially those with no intrinsic value like bitcoin and etherpose significant risks for consumers and bear more similarities to gambling than to financial services.
In addition, the Financial Conduct Authority (FCA) found in a survey from 2021 that 38 % of crypto investors viewed their investments as gambling. This perception may have been one of the inspirations for the Treasury Committee report.
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Risks and volatility in the crypto market
MEPs emphasized the high price volatility of cryptocurrencies and related issues financial risks for consumers. They warned that consumers betting on these unsecured tokens should be aware that they could lose all money.
Concern was also expressed that regulating crypto trading as a financial service would unite “Halo Effect” could generate that misleads consumers into believing that this activity is safe and secure.
Criticism of the government and calls for balanced regulation
The committee also criticized the recent ones Attempts by the government to produce a non-fungible token (NFT) via the Royal Mintand called for a more balanced approach to supporting crypto technologies.
It is argued that it It is not the government’s job to promote certain technological innovations for their own sake. Instead, the Government not waste public resources on projects with no clear benefit. The project was criticized by the Labor Party as a “crypto gimmick” and was abandoned in March, less than a year after it was announced.
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Demand for effective regulation
MEPs stressed the need for effective regulation in order to Protecting consumers from harm while promoting innovation in the financial services sector. They called on the government to regulate retail and investment activity in unsecured crypto assets as gambling.
However, it was recognized that the underlying technologies of crypto assets could potentially bring benefits to the financial services sector, particularly for cross-border transactions and payments in less developed countries.
Criticism of the current government position
The position of the Treasury Committee is in striking contrast to the current position of the British government. Prime Minister Rishi Sunak had proposed that the UK, during his tenure as Chancellor in April 2022 to become a global hub for crypto asset technology. The government plans to regulate cryptocurrency activity as a financial service to underscore the importance of the financial services sector to the UK economy.
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reactions to the report
Response to the committee’s statements was quick and unequivocal. CryptoUK Board Advisor Ian Taylor criticized the committee’s position, stressing that in the directly contradicts the HMT’s consultation proposals to include activities in the existing financial regulatory framework.
He pointed out that Gambling is exempt from capital gains tax and asked if the government really wants to forego millions of pounds in tax revenue from trading unsecured cryptoassets. However, Taylor acknowledged the risks involved and suggested addressing them through education and an appropriate regulatory framework.
Newcomers to the crypto market are causing a stir
Some new projects have recently made headlines. They are now briefly introduced below:
DeeLance (DLANCE)
DeeLance is hiring revolutionary metaverse represents, which focuses on the profitable and on the crypto market underrepresented business sector specialized. In this regard, users of the Proximity and connectedness of a real company despite great distance when working remotely benefit. Doing so in this Meetings, job interviews, interactive training, co-working, trade fairs, networking events and much more allows. Furthermore, DeeLance includes a decentralized freelancer marketplace. On this, by eliminating third parties lowest cost and highest efficiency be offered. Another important element is the NFTs that present rights securely and transparently, and can also be fragmented for real estate, collectibles, and more.
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Ecoterra (ECOTERRA)
Ecoterra does it global waste problem. Because with the innovative ESG coin, users can environmental andContribute to climate protection and at the same time ensure cleanliness and order. The award-winning project uses the urban miningto monetize urban “gold mines”. Users get through Recycle-2-Earn cryptocurrencies as a reward for recycling their trash. The recycled materials and CO₂ emission credits can on his marketplaces be traded while the environmental performance over a Impact Profile playfully pursued. All climate-friendly milestones are rewarded with NFTswhich in turn a excellent marketing tool for companies are. Already have each other many international brands connected.
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RobotEra (TARO)
In which Sandbox Metaverse from RobotEra users can use their create your own virtual realities in an interactive VR environment. The creative universe offers free tools to create your own game objects as NFTs and more complex creations. These can then in one versatile NFT economy can be used in a variety of ways, e.g. to construct buildings to obtain resources or to generate income through billboard advertising. This requires the resources to create new creations. RobotEra offers a Immeasurable world of experiences full of gaming, online shopping, virtual meetings, art and much more. It should appeal to a wide variety of target groups in order to ensure good distribution.
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About the author: Simon Feldhusen first came into contact with the stock market 17 years ago and has been dealing intensively with trading, cryptoassets, stocks, P2P, corporate finance, finance and entrepreneurship on a daily basis for more than 8 years. He has also been working as a copywriter and ghostwriter in the financial sector for several years. During this time he has acquired a diversified knowledge through various training courses on the financial markets and following the daily news. Since then, not a day has gone by that he hasn’t engaged with the markets. He publishes for Finanzen.net, ETF-Nachrichten.de, Coincierge.de and P2E News.com.
