A panel of UK lawmakers has proposed that cryptocurrencies be regulated as gambling, citing the significant risks they pose to consumers.
The report, which was released on Wednesday, recommends that the government create a new regulatory framework for cryptocurrencies that would be similar to the one that currently governs gambling.
The report found that cryptocurrencies are “potentially used by fraudsters and pose significant risks to consumers.” It also noted that the prices of cryptocurrencies are “highly volatile” and that there is a risk that all money invested in them could be lost.
The report’s recommendations have been met with mixed reactions from the crypto community. Some have welcomed the proposed regulation, arguing that it would help to protect consumers from fraud and scams. Others have criticized the proposal, arguing that it would stifle innovation in the crypto industry.
The government has not yet responded to the report’s recommendations. However, the report is likely to shape the debate on cryptocurrency regulation in the UK in the coming months.