The UK Parliament recently published a 28-page document that proposes to regulate digital currencies that are not related to real assets, as gambling.
The study highlights that such digital currencies, including Bitcoin and Ethereum, can be used for criminal activities and money laundering. According to lawmakers, they represent a significant risk to customers and the economy.
The researchers said that since cryptocurrencies have no intrinsic value, are extremely unpredictable and do not bring constructive benefits to society, trading cryptocurrencies without collateral is more like gambling than providing financial services, so these assets should be regulated accordingly.
It should be noted that the UK government is currently working on comprehensive legislation for the cryptocurrency sector. Some lawmakers have warned that if cryptocurrencies are treated as financial assets in the legislative framework, it could give customers a mistaken sense of security.
Nevertheless, despite the negative view of virtual currencies, the report identifies opportunities for Blockchain technology in the UK financial services industry.
In early May, an amendment was proposed to the UK Financial Services and Markets Bill that would allow cryptocurrency companies registered with the FCA to approve their own advertising without waiting for external approval.