United Kingdom: Closed Inquiry Into the Crypto-Asset Industry

On 17 May 2023, the UK Parliament's Treasury Committee closed its Inquiry into the crypto-asset industry with the publication of a report titled "Regulating Crypto". The report acknowledges the potential benefits of crypto-assets in certain cases, especially in cases involving cross-border payments and low-income countries with less developed financial sectors. However, generally, the Committee emphasised the risks associated with crypto-assets and the consequent need for regulation. The report welcomed some of the government's recent proposals for crypto regulation, recommending a balanced approach to government support for crypto development. The report also expressed concerns around consumer speculation in unbacked crypto-assets due to the price volatility and absence of intrinsic value of such assets. As a result, the report strongly recommended that the Government regulate retail trading and investment activity in unbacked crypto-assets as gambling rather than as financial services.