UK government rejects plan to 'regulate cryptocurrencies like gambling'

The U.K. government has rejected lawmakers' plan to regulate cryptocurrencies like gambling, saying its existing proposals better address the risks posed by events such as the FTX crash. According to the UK government, "an isolated system of gambling regulation is unlikely to address risk factors such as the alleged commingling of client funds at cryptocurrency exchange FTX, or to correct issues related to insider trading and market manipulation covered by traditional financial regulation." Reliance on gambling regulation The recommendations would be a fundamental departure from the government's expected approach, which reflects the recommendations of global standard-setting bodies."