The UK Gambling Commission is seriously considering allowing cryptocurrency payments for licensed operators, following Parliament’s proposed new regulatory framework for digital assets. UKGC Chief Executive Tim Miller told the Betting and Gaming Council’s AGM on February 26 that the regulator has already begun consulting the industry on how crypto could work in practice.

The potential shift comes as the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 makes its way through Parliament. If approved, the framework takes effect in October 2027 and brings all cryptoasset activity under FCA oversight. That means any firm handling crypto will need proper authorization. A big change from the current grey area.

Industry Demand Meets Regulatory Reality

Miller was frank about why the UKGC is looking at this now. Consumer demand for crypto payments is growing, and once the new regime is in place, there will be a proper regulatory structure to work within. That combination makes it worth exploring how licensed operators could offer crypto as a payment option.

The regulator has asked its Industry Forum for input as a first step. Miller wants to understand how operators think crypto payments could be integrated into the existing licensing framework. He’s not setting deadlines. That suggests the UKGC is taking a measured approach rather than rushing into anything.

The Black Market Problem

Miller didn’t sugarcoat the challenges. Cryptocurrency is heavily used by unlicensed offshore sites, precisely because it operates outside traditional banking channels. That’s a problem the UKGC will need to address head on. Any framework for crypto payments will need robust controls to prevent money laundering and make sure operators can still meet their customer due diligence obligations.

The timing is interesting. The UKGC has historically been cautious about crypto, given its association with the black market. But with a proper regulatory framework on the horizon and clear consumer interest, the calculation has changed. Look, if crypto is going to be properly regulated anyway, keeping it out of licensed gambling just pushes players toward unregulated sites that already accept it.

What This Means for Operators

For UK licensees, this is worth watching closely. Crypto payments could offer faster transactions and lower processing fees compared to traditional banking. They’re also popular with certain demographics, particularly younger players who are comfortable with digital currencies.

But there’s no guarantee the UKGC will give this the green light. Miller’s comments suggest the regulator is in listening mode, gathering information before making any decisions. The black market issue is serious. The UKGC will need convincing that licensed operators can offer crypto payments without creating new risks.

The October 2027 timeline for the broader crypto framework gives everyone plenty of time to work through these issues. Don’t expect any announcements soon, but this is a clear signal that the UKGC isn’t dismissing crypto out of hand anymore.

What the team thinks

Sheena McAllister says:

While the UKGC exploring crypto payments shows welcome regulatory flexibility, operators shouldn’t expect swift implementation given the Commission’s traditional risk-based approach. The real challenge will be integrating AML compliance and source of funds checks with blockchain transactions, something the consultation will need to address thoroughly before any framework gets approval. I’d advise licensees to engage early in this consultation process because getting the technical standards right from the start will be far easier than retrofitting compliance later.