The UK Gambling Commission is preparing to consider whether betting operators licensed in Great Britain can be allowed to accept cryptocurrency payments. This is in response to increasing consumer demand and the movement towards a digital asset regulatory framework being established by the Financial Conduct Authority.
What happened: Review of betting cryptocurrencies in the UK
Tim Miller, Executive Director of Research and Policy at the Gambling Commission, announced this plan during a speech at the Betting and Gaming Council's annual conference in London on Thursday.
Miller stated that the FCA is expected to finalize regulations governing cryptocurrency activities within this year, with the regulations anticipated to take effect by the end of 2027. Under the new regime, gambling operators could also be included in the group applying for cryptocurrency licenses.
He said, “As interest from gambling users grows, we now want to explore how we can create potential pathways to utilize crypto assets as a consumer payment option within the licensed and regulated gambling space in the UK.” Miller requested that the Industry Forum, an advisory body involving industry participants, consider ways to “reasonably advance” cryptocurrency payment methods.
About 8% of the adult population in the UK holds cryptocurrencies, which is a decrease from last year even as Bitcoin hit an all-time high in October and then underwent a correction. Miller explained that allowing regulated operators to bet on digital assets could help mitigate the risks posed by illegal sites that account for 71% of the European online betting and casino market, according to 2024 Yield Sec data.
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Why it matters: Regulated cryptocurrency betting
This initiative is part of a broader effort for the cryptocurrency industry to strengthen its relationship with regulators and lawmakers in the UK, which has fallen behind the United States and the European Union in enacting laws related to digital assets.
Miller acknowledged that there are significant challenges while maintaining an open attitude. He said, “I want to approach this issue with a spirit that explores the art of what is possible rather than looking for reasons to block innovation.”
However, he warned that simply allowing cryptocurrency payments does not mean that cryptocurrency casinos will be regulated in the UK immediately. This is because such operators are likely to fail customer identity verification (KYC) and appropriateness assessments. Miller stated in an interview with Bloomberg News, “If they have operated illegally until now, it will be difficult to pass the appropriateness assessment.”
According to a separate Yield Sec report, unlicensed gambling operators have increased their share of the UK gambling market to 9% by leveraging illegal streaming sites. The report was published in January.
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