The move has not gone down well with local players, especially given that the United Kingdom is thought to be heading toward becoming a progressive crypto hub. <\/p>\n
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In a May 17 statement shared with Cointelegraph, CryptoUK argued that \u201ctaking this approach will not take into account the nuances of the sector and the real opportunities for inward investment and growth for the UK economy as a whole,\u201d adding that: <\/p>\n
\u201cNo other global jurisdiction has taken this approach and referencing MiCA in the EU, we need to be taking a bespoke and tailored approach for regulation within the industry to ensure the UK does not become a hostile environment for businesses to be domiciled.\u201d<\/p><\/blockquote>\n
The organization also suggested that such an approach may ultimately lead to U.K. consumers instead looking for offshore crypto platforms to engage with, which it feels is \u201c wholly against the objective of protecting these consumers through regulation.\u201d<\/p>\n
In Kraken UK\u2019s statement, the firm emphasized that it \u201cfundamentally\u201d disagrees with the Treasury\u2019s \u201cconclusion that cryptoassets have no intrinsic value.\u201d<\/p>\n
Related: <\/em><\/strong>UK financial watchdog announces inspections against sites with suspected illegal crypto ATMs<\/em><\/strong><\/p>\n
\u201cIt\u2019s regrettable the committee does not support the opportunity the UK has to be a true global leader in our rapidly developing industry,\u201d the firm said, adding:<\/p>\n
\u201cThe committee\u2019s suggestion that crypto assets should be regulated as gambling products is misguided and wholly unsuitable for UK consumers.\u00a0<\/p><\/blockquote>\n
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.<\/p>\n
CryptoUK pointed to a potential loss of capital gains tax should crypto trading be regarded as gambling.<\/p>\n
\u201cGambling 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?,\u201d CryptoUK stated. <\/p>\n
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.<\/p>\n