The gambling law is under review, but slowly, and as MPs and industry bodies try to clarify the details, a new concern has emerged. Cryptocurrency also appears to need stricter regulation, and the UK has not hesitated to act in that direction, although the latest proposal, which calls for regulating cryptocurrencies as gambling – or somehow on a gambling law review, may not be the best. . .
The government has been moving quickly on cryptocurrency. It has suspended crypto ads from the metro service and expelled Binance, a major crypto exchange, from the country. However, non-fungible tokens (NFTs) are rife in the country, as are new measures designed to protect consumers.
One stone and two birds
The country’s Advertising Standards Authority (ASA) recently had an issue with Arsenal Football Club over the promotion of fan tokens, NFTs that are used to influence club decisions and access to other experiences. Now, a growing number of MPs are calling for cryptocurrency to be included in one form or another in the upcoming gambling review.
The report, published by iNews, highlights concerns among parliamentarians that the general approach to cryptocurrency has been too lax. This appears to be hitting hard with the Financial Conduct Authority (FCA), the country’s main financial regulator, which also believes that the crypto sector has been left out as a sort of “Wild Wes”.
Richard Holden, a Conservative Member of Parliament, argued that cryptocurrency investments “can be considered gambling easily and in a common sense.” The ultimate goal, he said, is to issue guidelines that will protect consumers.
Combining crypto regulation with a gambling review would not make sense unless it was primarily included and targeted at platforms that use crypto as their main bet currency. Until then, any review that has passed with a focus on gambling will not regulate the broader legitimacy of cryptocurrencies in the UK.
Feeling good but wrong approach
The Bank of England has called on like-minded people from around the world and financial regulators, in general, to work together and create a framework that allows for a stronger response to the growing sector of NFTs, decentralized finance known as DeFi, private cryptocurrencies, altcoins, and stablecoins.
A former assistant to Jeremy Corbyn, Matt Zarb-Cosen, echoed Holden’s concerns, arguing that promoting cryptocurrency through football is a dangerous precedent that could have life-damaging consequences for vulnerable consumers.
The Financial Conduct Authority (FCA) reminds consumers that the high-risk profile of cryptocurrencies means that people should be prepared to lose all of their money.