The U.K. government has rejected lawmakers’ plan to regulate cryptocurrencies like gambling, saying its existing proposals better address the risks posed by events such as the FTX crash.
The UK government said a siled gambling regulatory regime was unlikely to address risk factors such as the alleged mixing of client funds at cryptocurrency exchange FTX, or correct problems related to insider trading and market manipulation covered by traditional financial regulation.
Relying on recommendations for gambling regulation would be a fundamental departure from the government’s expected approach, which mirrors the recommendations of global standard-setting bodies.