Partner Richard Cannon comments on the Treasury Committee’s call for unbacked crypto trading to be regulated as gambling, and argues that more stringent regulation will help restore confidence in the sector.

Richard’s comments were published in Verdict, 17 May 2023, Business Insider, 17 May 2023, Yahoo Finance, 17 May 2023, and CoinDesk, 17 May 2023.

“The Treasury Committee’s decision is disappointing, and risks doubling down on the view that the UK is closed for business when it comes to crypto and tech. Modern regulated economies must confront and engage with the evolution of finance, and develop a sophisticated regulatory regime which is not achieved by dismissing crypto investment as gambling. The government must develop the UK as a properly regulated hub for digital assets where customers’ assets are secure and protected.

“The Treasury Committee’s assertion that Bitcoin has no intrinsic value is an academic viewpoint and ignores the practical reality, given that Bitcoin’s market cap is over $500 billion, and companies globally are increasingly accepting it as a form of payment. 

“Recent Crypto scandals where the public have lost money stem from poor regulatory oversight of major digital assets exchanges rather than the volatility of the major cryptocurrencies. The government must stringently regulate crypto exchanges to build consumer confidence, and the Treasury Committee report wishing the crypto genie could be put back in the bottle misses the point.”

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