Cryptocurrency trading must be regulated to limit the harm caused by addiction, the NHS boss says

By Liam On Jun 12, 2024

The head of the NHS has suggested that cryptocurrency trading should be regulated to limit the harm caused by gambling addiction.

Amanda Pritchard said the healthcare industry has seen an increase in young people seeking help after becoming addicted to the volatile digital currency market.

She warned that the NHS risks becoming an “expensive safety net” if the nation fails to “grab the nettle” and do more to prevent ill health, rather than just treat it.

Ms Pritchard, chief executive of NHS England, today raised the alarm at the NHS ConfedExpo conference in Manchester following a recent visit to an NHS addiction centre.

Amanda Pritchard said the healthcare industry has seen an increase in young people seeking help after becoming addicted to the volatile digital currency market. She warned that the NHS risks becoming an ‘expensive safety net’ if the nation fails to ‘grab the nettle’ and do more to prevent ill health, rather than just treat it

Bitcoin, the first cryptocurrency, traded at $69,300 this afternoon, but has reached a high of $73,700 and a low of $24,800 this year. Others have seen their value wiped away

Cryptocurrencies are digital currencies, which are outside the control of authorities such as central banks and governments.

They are bought and sold like stocks and traded globally, but their values fluctuate wildly and are a focus of speculative traders hoping to make a quick profit.

Addiction experts warn that traders can easily get ‘sucked into a cycle of speculation, profits and losses’, with social media gurus enticing people to try it with attractive stories of how they made a fortune.

MPs on the Treasury committee have previously described the digital markets as akin to the Wild West, with committee chairman Harriett Baldwin labeling the coins as ‘fool’s gold’.

Bitcoin, the first cryptocurrency, traded at $69,300 this afternoon, but has reached a high of $73,700 and a low of $24,800 this year. Others have seen their value wiped away.

Do you have a gambling problem?

The NHS has a questionnaire to help people determine whether they may have a gambling addiction.

For each question, score zero for each time you answer “never,” 1 for “sometimes,” 2 for “usually,” and 3 for “almost always.”

To ask:

Are you betting more than you can afford to lose?

Do you have to gamble with larger amounts to get the same feeling?

Have you tried to win back money you lost (hunting for losses)?

Have you borrowed money or sold something to get money to gamble?

Have you wondered if you have a problem with gambling?

Has your gambling caused you any health problems, including feelings of stress or anxiety?

Have other people criticized your bets or told you that you had a problem with gambling (regardless of whether you thought it was true or not)?

Has your gambling behavior caused financial problems for you or your household?

Have you ever felt guilty about the way you gamble or what happens when you gamble?

Result:

If your total score is 8 or higher, your gambling could cause problems for you or those close to you.

Source: NHS

Mrs Pritchard said: ‘In 1948 betting shops were still illegal. Fast forward to earlier this year.

‘The NHS opened a fifteenth specialist gambling addiction center in response to a real and growing social need.

‘The NHS can help, will help. But again, we can’t solve this alone.

“So as a society we have to ask ourselves if it’s okay to just continue to pick up the pieces as the methods used to keep people addicted become more and more sophisticated.

‘More and more opportunities are emerging for younger people to become addicted to gambling, including – as I heard from staff when I visited the National Problem Gambling Clinic earlier this year – on unregulated cryptocurrency markets.

‘Are we going to tackle the problems at the source, or are we going to accept that the NHS will become an expensive safety net?

‘This type of service is what the NHS was born with, but it should not be our ambition now.’

She later added: ‘The addictive habit sees people investing their own money in something with no fixed value, while the NHS is left to pick up the pieces – this growing problem could create further demand on the healthcare system.

‘Gambling can have a debilitating impact on personal relationships and seriously damage your finances and your mental well-being. So if you are concerned about your relationship with gambling, please come to our clinics by self-referral or speak to your GP practice.”

The Treasury Department’s committee report published last year called for cryptocurrencies to be regulated as gambling, rather than a financial service, to avoid creating a ‘halo’ of credibility around the $1.2 trillion market .

A 2022 survey found that around 10 percent of British adults (five million people) own or have owned crypto assets, with ‘cryptocurrencies’ being the most common type (79 percent).

The most frequently cited reason for holding crypto assets was that it was a ‘nice investment’ (52 percent).

There was also anecdotal evidence of schoolchildren speculating in crypto assets.

The price volatility of unsecured crypto assets – and their lack of intrinsic value – exposes consumers to significant risks of loss.

Dr. Niall Campbell, a consultant psychiatrist specializing in addiction treatment at Priory Hospital Roehampton, said: ‘In recent years we have seen a steady stream of patients who have developed serious problems with cryptocurrency trading.

‘For some it becomes an addiction because it takes over their lives. As with other addictions, there are huge consequences for their mental health, financial health and relationship health.

‘It can be very similar to a gambling addiction in that people are constantly chasing their losses.

“We would use a similar treatment model as other addictions, in that we recommend abstinence.”