Gambling Commission Deliberates On Crypto Payments For UK-licensed Operators

The Gambling Commission has opened discussions on whether crypto assets could be permitted as a payment method for UK-licensed gambling operators. The issue was raised during the Betting and Gaming Council AGM in London.

Tim Miller told attendees that the regulator has asked its Industry Forum to examine what a workable route might look like for allowing crypto to be used by consumers, subject to existing licensing objectives.

“We do now want to start looking at what the potential path forward would be to create a way for crypto assets to be used as a consumer payment option for licensed and regulated gambling here in Great Britain,” he said, referring to the process as a “tentative first step”.

The move follows the introduction of Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025, which have been laid before Parliament. If approved, the regulations would place certain crypto asset activities within the remit of the Financial Conduct Authority.

Miller said the measures will come into force on 25 October 2027. Firms conducting regulated crypto asset activities would require FCA authorisation and specific permissions under the proposed framework.

Consumer demand and black market pressures

Miller noted that consumer interest in crypto has grown and that this trend has prompted the Commission to examine whether a compliant option could be created. He did not set a timetable for the work and said no arbitrary deadlines would be imposed.

Research conducted by the regulator into unlicensed gambling activity has repeatedly highlighted crypto related searches. According to Miller, cryptocurrency is one of the two most common search terms directing British consumers to offshore gambling sites operating without domestic safeguards.

He suggested that this pattern strengthens the case for considering innovation as part of a channelisation strategy. “Demand exists and will probably grow,” Miller said, adding that innovation can support consumer protection where it reduces incentives to use unregulated operators.

The Commission has previously raised concerns about offshore crypto casinos targeting British players, including individuals who have self excluded through GAMSTOP. Those platforms fall outside the Commission’s enforcement reach.

FCA oversight seen as critical foundation

Any pathway allowing crypto payments within licensed gambling would depend on the FCA’s supervisory regime. Once the new regulations are enacted, crypto firms involved in custody, exchange or related services would need formal authorisation.

This structure would introduce regulatory scrutiny over entities interacting with gambling operators. Miller said the oversight could “start to change the picture” for the sector.

He emphasised that the Commission’s role would remain anchored in the Gambling Act 2005. The licensing objectives include preventing crime, ensuring fairness and protecting vulnerable persons.

Balancing innovation with risk management

Miller acknowledged that “significant challenges and risks” would need to be addressed before any framework could proceed. He characterised the current phase as exploratory and subject to alignment with existing regulatory principles.

The Commission is nearing completion of several reforms stemming from the recent review of gambling legislation. Future priorities are expected to include greater engagement with technological developments affecting the sector.

Any decision to permit crypto payments would require clear safeguards and coordination with financial regulators. For now, the regulator is gathering input through its Industry Forum before it considers further steps.