Emma RadmoreA report from the Treasury Committee calls for consumer trading in unbacked crypto to be regulated as gambling. The Committee says these currencies have no intrinsic value and serve no useful social purpose, yet they consume large amounts of energy and are targeted for use by criminals. It says trading in these crypto assets resembles gambling more than a financial service, and should be regulated as such.
The Committee is also concerned that regulating consumer crypto trading as a financial service will create a halo effect, which will lead consumers to believe the activity is safe and protected when it is not.