Kraken, UK trade body derides lawmaker description of crypto as ‘gambling’

Self-regulatory organization CryptoUK and crypto exchange Kraken UK has slammed a recent report from a panel of British lawmakers that suggested crypto should be regulated in a similar vein to gambling.

In a May 17 report, the Treasury Committee “strongly recommended” that unbacked crypto be

“It’s regrettable the committee does not support the opportunity the UK has to be a true global leader in our rapidly developing industry,” the firm said, adding:

“The committee’s suggestion that crypto assets should be regulated as gambling products is misguided and wholly unsuitable for UK consumers. 

It argued that not only does it “miss the purpose and potential of the technology,” but noted that gambling protections don’t offer the same safeguards as financial services regulations.

CryptoUK pointed to a potential loss of capital gains tax should crypto trading be regarded as gambling.

“Gambling is exempt from capital gains tax. Does the UK government wish to exclude tens of millions of pounds in tax income from gains made by the buying and selling of unbacked crypto assets?,” CryptoUK stated.

Of course not, but it’s so incredibly silly that this is the result of a consultation that was VERY well attended by written evidence from people involved

— laurence (@functi0nZer0) May 17, 2023

The specific extent to which crypto would be regulated “as gambling” has not been defined by the Treasury, however, the report recommended imposing strong regulation and guidelines relating to consumer protections, anti-money laundering, and terrorism financing.

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