In May, the UK’s multi-party parliamentary Treasury Committee suggested that the government should regulate cryptocurrencies as gambling. Today, Her Majesty’s Economic Secretary of the Treasury, Andrew Griffith, rejected the proposal unequivocally.

Griffith said that it contradicts the approach of other international bodies such as IOSCO and the Financial Stability Board who instead prefer to apply the “same risks, same rules” approach to the regulation of crypto assets.

He also suggested that while the Gaming Commission might be effective with gaming, cryptocurrencies are not the same. “Monitoring financial risks, which are similar to those that exist within financial markets, is not within the Gaming Commission’s mandate or field of expertise,” an addendum to Griffith’s letter said.

He highlighted the risks demonstrated by FTX’s failure, which include mixing corporate funds with investor assets, lack of risk controls and management, unmanaged conflicts of interest, weak governance and excessive leverage.

The Secretary pointed out actions already taken by the government, such as the financial promotion regulations that should come into force at the end of this year. In February, Her Majesty’s Treasury launched a consultation on crypto assets that included a draft framework around disclosures to issuers, market abuse, and requirements for taking custody of digital assets or operating crypto trading platforms.

Griffith reiterated the government’s intention to make the UK “a leading jurisdiction for crypto asset technology and investment, backed by clear and robust regulation.”