The administration has been making rapid progress in the area of cryptocurrency. It removed cryptocurrency advertisements from the metro system and banned Binance, a prominent cryptocurrency exchange, from the nation. Nonfungible tokens (NFTs) are still on the rise in the country, but so are new consumer protection policies.
Two Strings to One Bow
Arsenal Football Club was recently fined by the Advertising Standards Authority (ASA) for marketing fan tokens, which are non-fungible tokens that can be used to vote on club decisions and get access to multiple events. An increasing number of parliamentarians are now requesting that cryptocurrencies be included in the forthcoming gaming review, in some form or another.
The study, which was published by iNews, expresses MPs’ concerns that the general attitude to cryptocurrency has been too lenient. This seems to resonate with the Financial Conduct Authority (FCA), the country’s significant financial regulator, which likewise believes that the crypto sector has been ignored as a “Wild Wes.”
Crypto investments might very simply and logically be called gambling, according to Richard Holden, a conservative MP. He claims that the ultimate purpose is to give guidelines that protect customers.
Crypto regulation should not be mixed in with the gaming review unless it is primarily concerned with and targets platforms that use crypto as their primary betting currency. Even so, any investigation focused just on gambling would do little to govern the wider validity of cryptocurrency in the UK.
Good Intention, but Inappropriate Approach
The Bank of England has urged for homologs from all over the globe, as well as financial institutions in general, to get along and build a framework that enables for a greater reaction to the expanding sector of NFTs, DeFi, private cryptocurrencies, altcoins, and stablecoins.
Matt Zarb-Cousin, a former Jeremy Corbyn staffer, reiterated Holden’s concerns, claiming that promoting cryptocurrency through soccer is a risky precedent that might have life-altering implications for vulnerable individuals.
The Financial Conduct Authority (FCA) has cautioned consumers that cryptocurrencies are highly risky and that they should expect to lose all their funds if they invest.