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A panel of cross-party British lawmakers is going against the government's stance and recommended trading of 'unbacked' crypto assets like Bitcoin and Ether to be regulated as The trading of so-called “unbacked cryptoassets” such as Bitcoin (BTC) and Ether (ETH) should be regulated as gambling rather than a financial service, a panel of British In a new report, the committee called for consumer trading in unbacked crypto assets to be treated in regulation as gambling. The cross-party committee of MPs said cryptocurrencies Trading in cryptocurrencies is akin to gambling and should be treated as such, British lawmakers said. Unbacked tokens like bitcoin and ether aren't underpinned by Retail investing in unbacked cryptoassets like Bitcoin should be regulated like gambling because they are highly volatile and have “no intrinsic value,” an influential panel Commenting on the report, Harriett Baldwin MP, Chair of the Treasury Committee, said: “The events of 2025 have highlighted the risks posed to consumers by the cryptoasset industry, large parts of which remain a wild west. Effective regulation is clearly needed to protect consumers from harm, as well as to Ver más Regulating retail trading and investment in unbacked cryptocurrencies could create a 'halo' effect that leads consumers to think the activity is safer than it is, or protected

Crypto Trading: Gambling in Disguise? UK Lawmakers Push for Regulation

Is crypto trading closer to a casino game than a sound financial investment? A growing chorus of voices in the UK believe so, and they\'re pushing for change. Forget the promises of overnight riches – a panel of cross-party British lawmakers is going against the government\'s stance and recommended trading of \'unbacked\' crypto assets like Bitcoin and Ether to be regulated as gambling.

Why the Gambling Comparison?

The trading of so-called “unbacked cryptoassets” such as Bitcoin (BTC) and Ether (ETH) should be regulated as gambling rather than a financial service, a panel of British lawmakers argues. In a new report, the committee called for consumer trading in unbacked crypto assets to be treated in regulation as gambling. The cross-party committee of MPs said cryptocurrencies Trading in cryptocurrencies is akin to gambling and should be treated as such, British lawmakers said. Unbacked tokens like bitcoin and ether aren\'t underpinned by any underlying asset, making their value purely speculative. This volatility, coupled with the lack of intrinsic value, fuels the argument for gambling-style regulations.

Protecting Consumers from Crypto\'s "Wild West"

Retail investing in unbacked cryptoassets like Bitcoin should be regulated like gambling because they are highly volatile and have “no intrinsic value,” an influential panel concludes. Commenting on the report, Harriett Baldwin MP, Chair of the Treasury Committee, said: “The events of 2025 have highlighted the risks posed to consumers by the cryptoasset industry, large parts of which remain a wild west. Effective regulation is clearly needed to protect consumers from harm, as well as to provide clarity and accountability within the crypto market.”

The "Halo Effect" and Regulation Concerns

Some experts caution that Regulating retail trading and investment in unbacked cryptocurrencies could create a \'halo\' effect that leads consumers to think the activity is safer than it is, or protected. This highlights the complexities of finding the right regulatory approach. While increased protection is vital, it must be implemented carefully to avoid unintended consequences.

What Does This Mean for Crypto Traders in the UK?

The future of crypto trading in the UK is uncertain, but one thing is clear: the debate is heating up. If lawmakers succeed in classifying unbacked cryptoassets as gambling, it could lead to stricter rules, potential limitations on leverage, and increased warnings about the risks involved. Stay informed and prepared for potential changes in the regulatory landscape.

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