They have criticized a recent report from British lawmakers. The report suggested that cryptocurrencies should be regulated like gambling. It raised concerns about the risks associated with cryptocurrencies, such as their unpredictable prices and lack of value.
CryptoUK argued that the report didn't consider the unique characteristics of the crypto industry and the opportunities it brings to the UK economy. They said that other countries haven't taken the same approach and that the UK should have its own tailored regulations to support the industry.
CryptoUK also warned that if cryptocurrencies are classified as gambling, people in the UK might start using platforms based in other countries that don't have strong consumer protections. They believe this goes against the goal of protecting consumers through regulation.
Kraken UK disagreed with the report's conclusion that cryptocurrencies have no value. They said that the UK has a chance to be a leader in the crypto industry and that classifying cryptocurrencies as gambling is not suitable for UK consumers. They explained that gambling regulations don't provide the same level of protection as financial services regulations.
CryptoUK pointed out that if crypto trading is treated as gambling, the UK government might lose a lot of tax income from the gains people make by buying and selling cryptocurrencies. This is because gambling is exempt from certain taxes.
The report didn't provide specific details about how cryptocurrencies would be regulated as gambling, but it recommended strong regulations to protect consumers and prevent illegal activities.
Both CryptoUK and Kraken UK expressed disappointment with the report and stressed the importance of considering the unique nature of cryptocurrencies when creating regulations. They believe that comprehensive regulations can protect consumers while also fostering innovation and growth in the crypto industry.
Overall, CryptoUK and Kraken UK disagree with the idea of regulating cryptocurrencies as gambling. They want the UK to have its own tailored regulations that support the industry and protect consumers. They believe that cryptocurrencies have value and can bring economic benefits to the UK.
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