The UK Gambling Commission (UKGC) is beginning to consider how the UK’s shifting crypto regulation will impact gambling.
Speaking at the Betting and Gaming Council‘s (BGC) AGM, the regulator’s Executive Director of Research and Policy, Tim Miller, confirmed that he has taken the ‘tentative first step’ of asking its industry forum to consider how the Financial Conduct Authority‘s (FCA) new framework would sit alongside current gambling regulations.
He said: “There will certainly, I think, be significant challenges and risks to overcome, considering this topic. But I’m really keen that we approach this in the spirit of exploring the art of the possible, rather than starting from a position of finding all the reasons not to innovate.
“We 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. At the Commission, we know that this is something where demand exists and will probably grow.”
Under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 (FSMA), developed by the FCA and the UK government, firms wishing to provide services associated with crypto assets will need to be authorised under FSMA.
UK gambling rules currently prevent regulated operators from offering crypto payments, meaning such facilities remain the preserve of the black market.
However, a shift towards acceptance by the government means that it is likely gambling firms will be interested in how alternative payment methods could be used within the sector – requiring the UKGC to explore the need for new rules.
Although Miller confirmed that no ‘arbitrary’ timeline has been set on the process by the UKGC, FSMA is expected to come into effect in October 2027, meaning that the UKGC has less than two years to adjust to the changes.
Miller also added that searches related to crypto are one of the two biggest causes of British gamblers discovering the black market, suggesting updated regulation could act as an important mechanism for diverting players away from the illegal sector in the coming years.