Crypto payments studied as UKGC weighs FCA-aligned option

TLDR

• UKGC exploring crypto payments; UK licensed operators cannot accept crypto deposits today.
• Exploratory discussions only; no policy change or operational permissions announced.
• Practical hurdles keep market fiat only despite no outright legal prohibition.

The UK Gambling Commission is exploring whether to allow cryptoassets as a payment method for betting, but crypto deposits are not permitted for UK-licensed operators today, as reported by Bloomberg. The initiative is exploratory rather than a policy change. Any pathway would be assessed within existing licensing objectives and legal duties.

iGamingBusiness reported that the regulator’s Industry Forum will consider how cryptoassets could be used to fund legal gambling. Parallel briefings indicate discussions have opened on feasibility for UK-licensed operators. No operational permissions accompany these discussions.

A UK government paper explains there is no law that outright forbids operators from accepting crypto, but AML, source-of-funds, volatility, and safer gambling controls have made approval impractical to date. That context means the market remains fiat-only in practice, notwithstanding offshore activity.

Why this matters: consumer protection, AML, FCA alignment by design

Consumer protection sits at the center of this debate because crypto’s volatility can rapidly change the real value of deposits, liabilities, and limits. AML and source of funds checks are harder in pseudonymous systems, raising counter-financial-crime obligations. Operators must evidence affordability and harm prevention regardless of the payment rail.

According to Coincentral, coordination with the Financial Conduct Authority’s FCA cryptoasset regime, expected to come into force by late 2027, will be essential to avoid regulatory gaps. Any permitted flow is likely to be designed for enhanced AML/CTF compliance, on-chain transaction monitoring, and source-of-funds verification from the outset.

“We are studying how a regulated pathway might work for allowing cryptoasset payments in gambling, and any such system must align with existing licensing and consumer protection standards,” said Tim Miller, Executive Director of Research & Policy. Cross-regulator mapping would be required as the financial services framework finalises.

At the time of this writing, Bitcoin (BTC) traded around $65,928, with sentiment described as bearish, an RSI near 42.3, and high 9.08% volatility. These figures contextualise consumer exposure to asset swings rather than signal any investment view.

Current status: what UK-licensed operators can and cannot do

Today, UK-licensed operators cannot accept customer deposits directly in cryptoassets, and there is no Commission policy authorising such activity. A government reform paper adds that regulatory hurdles, AML and source-of-funds checks, volatility management, and responsible gambling limits, have prevented approvals so far.

PaymentExpert has observed that one plausible pathway, if permitted, is to use third-party payment processors that convert crypto to fiat before funds reach the operator, avoiding on-balance-sheet crypto custody. The same observers highlight controls such as closed-loop wallets, blockchain analytics, enhanced KYC, and documented source-of-wealth assessments.

Industry commentary cautions that allowing crypto without robust controls could raise financial crime risk and harm outcomes; conversely, banning it entirely may push consumers to offshore sites with weaker safeguards. Any UK approach is expected to calibrate innovation against statutory licensing objectives.

Separately, a 2023 Treasury Committee recommendation to treat unbacked crypto trading as gambling concerned investment activity rather than betting payments, as noted by PoundSterlingLive; the government did not adopt that approach. This distinction matters: the current exploration concerns payment rails in regulated gambling, not reclassifying crypto trading.