UK Parliamentarians attack Cryptocurrency

Members of the British Parliament (MPs) are trying to persuade the UK government to become stricter in dealing with the crypto industry, reports suggest.  

Conservative MP Richard Holden told iNews that “It is the Wild West, this grey area between highly leveraged financial investments on the one hand and these products which could quite easily and sensibly be considered gambling,”

He further stated that “there needs to be a clear differentiation there in order to protect people”.

A former aide to Jeremy Corbyn of the Labour Party, Matt Zarb-Cousin, a former aide to Jeremy Corbyn, attacked football clubs that are launching fan tokens. Fan tokens are cryptocurrencies that are tied to a football club.  

According to Zarb-Cousin “It is one thing for football clubs to market gambling to fans, which could lead to people destroying their lives as a consequence, but I think it’s on another level,”

He continued by saying that “It’s even worse to be offering a way into cryptocurrency through the pretense of empowering them in effectively a completely unregulated area.” 

This comes as no surprise as most governments around the world as government and politicians are seemingly confused on what to do about cryptocurrencies. While ‘big’ countries like Nigeria and China have taken a tough stance against crypto, ‘small’ countries like El Salvador have embraced it.

In the last year, the UK has met the crypto industry with doubts. In January 2021, the Financial Conduct Authority (FCA) made its position known by publishing five concerns about the crypto industry. Binance, one of the world’s most popular Centralized Exchange platforms also faced regulatory challenges.

How cryptocurrency will be treated by the UK government this year remains to be seen.