Source · Select Committees · Treasury Committee
Fifteenth Report - Regulating Crypto
Treasury Committee
HC 615
Published 17 May 2023
Conclusions (1)
5
Conclusion
Accepted in Part
Para 51
Regardless of the regulatory regime, their price volatility and absence of intrinsic value means that unbacked cryptoassets will inevitably pose significant risks to consumers. Furthermore, consumer speculation in unbacked cryptoassets more closely resembles gambling than it does a financial service. We are concerned that regulating retail trading and investment activity …
Government Response Summary
The government acknowledges concerns about consumer risks and the 'halo effect' in unbacked cryptoassets, stating it has implemented robust measures to ensure consumers understand the high risks involved, while maintaining its financial services regulatory approach.