The committee collected testimony from crypto firms including Binance and Galaxy Digital, current and former senior officials at the Financial Conduct Authority, as well as academics, economists and other industry participants. Millions of people around the world suffered crippling losses last year as prices collapsed and a host of crypto companies, from Celsius to FTX, imploded.Īlso Read: Crypto’s most influential firms often follow their own rules - even after FTX’s collapse Gambling businesses must also verify customers’ identities and take measures to prevent money laundering.Ĭountries like Singapore have taken steps in the past two years aimed at limiting retail trading in cryptocurrencies, arguing that the volatile nature of such assets make them ill-suited for most people. The UK levies steep taxes on the gambling industry to help finance services like advising on how to handle debts and addiction.

Putting investing in Bitcoin on par with betting on sports or in a casino reflects the panel’s view that cryptocurrencies have “no intrinsic value, huge price volatility and no discernible social good,' making them fundamentally different from traditional financial assets, Harriett Baldwin, who chairs the committee, said in a statement.

By convention, the government must respond to the report within about two months of publication, but it’s not required to follow the recommendations.Īlso Read: Crypto craze: Memecoin frenzy boost Pepe coin price by 7000%

“We are concerned that regulating retail trading and investment activity in unbacked cryptoassets as a financial service will create a ‘halo’ effect that leads consumers to believe that this activity is safer than it is, or protected when it is not,' the report said.Īround 10% of UK adults hold or have held cryptoassets, the report said, citing data from HM Revenue & Customs.

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