The UK Gambling Commission is actively reviewing the potential integration of cryptocurrency payments within the country's licensed betting markets. This exploratory move is part of a broader regulatory shift as the UK advances its formal digital asset oversight framework.
The Financial Conduct Authority (FCA) is expected to finalize its comprehensive crypto asset regulatory framework later this year, with enforcement targeted for late 2027. This new regime will govern firms offering crypto services in the UK, introducing licensing requirements focused on financial stability and customer protection. Gambling operators may subsequently apply for authorization under this FCA system, which could permit regulated platforms to accept crypto payments directly.
Tim Miller, Executive Director of Research and Policy at the Gambling Commission, emphasized the need for a balanced approach. Speaking at the Betting and Gaming Council Annual General Meeting, Miller stated the regulator aims to understand how crypto assets can be used safely, ensuring any approach aligns with core licensing objectives of preventing crime and protecting vulnerable users. "The Commission has asked its Industry Forum to examine how a regulated pathway may operate," Miller said, noting this work will help assess risks and necessary safeguards.
A key motivation for the review is to steer gambling activity toward licensed, regulated operators. The Commission has expressed concern about offshore, unlicensed platforms that already accept crypto payments. By enabling a regulated crypto payment option, the Commission believes it could guide users toward licensed venues that are subject to strict monitoring and enforcement, potentially reducing activity on illegal sites and improving overall consumer protection.
However, significant challenges remain, including adapting identity checks and source-of-funds rules to crypto transactions, which differ from traditional payment systems. The regulator has stressed that innovation must not weaken consumer safety. No formal decision has been made, and discussions are currently at an exploratory stage. Further consultations are expected once the FCA finalizes its rules, with no specific timeline set for potential implementation in the gambling sector.
