Is Crypto Treated Like Gambling?
The regulatory authority wants to regulate the crypto market and they come up with their approach to see this market. In the UK, the House of Commons Treasury Committee made a proposal on regulating crypto retail trading in the same way as gambling. The UK government rejected this proposal.
Do you see crypto as gambling? Or when you do trading as a retail trader, do you feel like you are gambling? Big guys who say crypto is a bubble may treat crypto as gambling like throwing some money and they can win or lose. It is not a way to build wealth, they build their wealth on the existing financial system and impose their perspective on crypto.
When you do trading in crypto, you are not gambling. You analyze the market, take an entry, set stop loss and profit, and stick to your system. You do not throw some money into crypto and hope to become rich. Gambling is different and obviously, you are not gambling in crypto.
You invest in crypto to build wealth outside of the existing financial system. There is no middleman and decentralization gives it special power that the centralized authority cannot take that away. You find freedom in crypto and see a bright future.
The government can follow its standards. I don't think treating crypto like gambling is the right approach. Some people can gamble in crypto and that does not turn crypto into gambling. You are missing the whole point if you have a gambling mindset.
Regulatory clarity is important. It gives institutions more confidence to allocate their capital to crypto. Crypto-friendly regulations will support crypto businesses to grow and accelerate innovation and development in this sector. But if the regulatory agency goes after crypto to put a limitation on crypto-related companies, that will force them to go offshore.
Crypto companies will gradually shift their businesses where they get a crypto-friendly environment. Regulatory agencies crack down on crypto pointing fingers at protecting retail investors. But most of the time retail investors get hurt by their actions.
You cannot treat crypto as gambling. If you do, you still close your eyes and cannot see what is coming up in crypto.
Reference: 1
Like gambling, trading is risky too.