The call for regulating cryptocurrency retail trading has gained momentum among UK lawmakers, likening it to gambling activities.

Experts have pointed out that consumers are at elevated risk due to the unpredictable nature and lack of fundamental value in most crypto assets.

A panel of British lawmakers said in a new report The conversation around cryptocurrency focuses on trading 'unbacked crypto assets,' including popular currencies like Bitcoin (BTC) and Ether (ETH). They should be classified as gambling because of the significant hazards posed to consumers, stemming from their price instability and potential for loss. Future regulations relating to crypto could be integrated with existing financial guidelines. Bitcoin The committee has firmly advised that trading and investing in unbacked cryptocurrencies should be regulated in a manner akin to other forms of gambling, adhering to the concept of 'same risk, same regulatory consequence.' They are imploring the government to take their recommendations into consideration during the regulatory process.

In a May 17 House of Commons report, the U.K. Treasury Given the price fluctuations and absence of real value, cryptocurrencies pose substantial risks to consumers, as cautioned by the committee. Notably, Baldwin indicated that Bitcoin and Ether constitute around 75% of the total market cap of cryptocurrencies, both categorized as 'unbacked.' gambling There are concerns that regulating the trading of unbacked cryptocurrencies may lead to a false sense of security among consumers. They might mistakenly believe that such activities are safer than they truly are or come with some form of protection, which can ultimately jeopardize consumer safety. The Gambling Commission oversees all gambling activities in the UK, including online and land-based options such as bingo halls, lotteries, betting shops, online betting platforms, and casinos.

Lawmakers contend that similar regulations should also be applied to crypto exchanges and other crypto asset businesses to mitigate the risk of addiction.

The recent events of 2022 have underscored the substantial risks that the crypto asset sector can pose to consumers. Many areas within this space still operate without robust oversight. Effective regulations are essential to safeguard consumers and to foster innovation within the UK’s financial landscape. However, due to their lack of intrinsic value, significant price swings, and absence of evident social benefit, the trading of cryptocurrencies like Bitcoin starts to resemble gambling more than it does a legitimate financial service. Consumers engaging with these unbacked 'tokens' must realize the possibility of complete monetary loss. Harriett Baldwin MP leads the Treasury Committee in these discussions. are all covered by its oversight.

The committee also acknowledged that certain crypto assets and their technologies possess potential benefits for financial markets, such as enhancing cross-border transactions and boosting financial inclusion. The UK government needs to establish a sound regulatory framework that fosters these advancements while addressing the associated risks. trading platforms The UK's Competition and Markets Authority (CMA) is currently examining AI foundational models, including large language models and generative AI. Commercial versions include ChatGPT, Bing Chat, and Anthropic's Claude, which facilitate various business functions like chat assistance, content generation, coding help, and image creation. Consumers can access these models directly, while innovative products and services are being developed by both established and emerging companies.

European lawmakers have approved stringent regulations concerning artificial intelligence with the introduction of the AI Act.

What impact has the rise of cryptocurrencies had on the gambling sector?

EU legislators have called for a summit to discuss the regulation of robust AI systems similar to ChatGPT.

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