UK Gambling Commission Tightens Expectations on Crypto Use

_{Gambling Commission steps up to assess crypto future. (Image: JVPhoto/Alamy)}

The UK Gambling Commission has warned that crypto-assets such as Bitcoin and Ether will face the same scrutiny as any other funding source for gambling businesses, and in some cases more.

In updated guidance published this week, the regulator said it has seen growing interest in crypto-assets being used to fund gambling operations or as a payment method. But it made clear that innovation will not come at the expense of transparency, anti-money laundering controls, or consumer protection.

For operators and players alike, the message is clear: digital assets do not mean lighter rules.

Crypto Funding Applications Face a High Bar

The Commission said it has received several operating licence applications in which businesses planned to rely on profits from crypto-asset investments, including initial coin offerings, to fund their activities.

Under its Licensing, Compliance and Enforcement Policy Statement, the regulator must be satisfied that a business is not financed by the proceeds of crime. That requires clear, documented evidence of the source of funds.

In conventional cases, such as money generated from the sale of property, applicants are expected to provide proof of the transaction and evidence that the funds are held in a relevant bank account. The same level of assurance is required where crypto-assets are involved.

According to the Commission, the anonymity linked to some crypto-assets, and weaknesses in how they are acquired or transferred, have consistently caused problems for applicants. In practice, some have been unable to provide a complete and satisfactory history of funds.

As a result, the regulator said it will not consider operating licence applications that include a crypto funding element unless full source-of-funds evidence is provided at the point of application. If an application is rejected for that reason, the fee will not be refunded.

The position reflects wider UK policy concerns. In a 2018 report, the House of Commons Treasury Committee concluded that cryptocurrencies function more as speculative assets than as currencies and recommended the term ‘crypto-assets’.

For prospective operators, the takeaway is straightforward. If your business is backed by crypto gains, you must be able to prove exactly where the money came from.

Payment Changes Must Be Reported

Crypto also raises compliance obligations for existing licensees.

Under key event 8 of the Commission’s Licence Conditions and Codes of Practice, operators must notify the regulator of any change in how they accept payment from customers. Licence condition 12.1.1 requires operators to review their anti-money laundering risk assessment when introducing new payment methods.

Where crypto-assets are introduced, the Commission expects operators to explain what type of payment method is being used, who the provider is, and how the risks have been assessed under the business’s AML framework.

The regulator distinguishes between accepting crypto directly and using a third-party processor that converts crypto into fiat currency before it reaches the operator. The compliance expectations differ depending on the model, but the responsibility remains with the licensee.

If crypto-assets are accepted directly, operators must show how they will manage exchange-rate volatility. Price swings could affect deposit limits, responsible gambling tools, or anti-money laundering triggers. Businesses must also explain how customer funds would be treated in the event of insolvency and what information has been provided to consumers about the risks associated with using crypto-assets.

The Commission has advised that legal or specialist advice may be appropriate, depending on the model adopted.

For brands featured in our guide to online casino sites, this means crypto is not a simple add-on. It requires updated risk assessments, revised policies, and formal notification to the regulator.

Higher Risk Than Sterling

The Commission said crypto-assets present additional risks compared with government-backed currencies such as pound sterling.

Those risks include price volatility, customer identification challenges, transaction scalability, fees, and the security of funds held. The risk profile varies depending on whether the operator receives converted fiat from a third party or accepts crypto directly.

In all cases, licensees must continue to meet the three licensing objectives set out in the Gambling Act 2005: preventing gambling from being a source of crime or disorder, ensuring gambling is conducted fairly and openly, and protecting children and vulnerable people from harm.

For players, that means crypto deposits may still trigger identity verification, affordability checks, and transaction monitoring. Using digital assets does not bypass UK safeguards.

For operators, it confirms that crypto is not a shortcut around established controls. Some may conclude the compliance burden outweighs the commercial benefit. Others may proceed cautiously through tightly managed third-party arrangements. Either way, the regulatory bar remains unchanged.

Commission Response

Casinos.com put three sets of questions to the Gambling Commission, covering coordination with the Financial Conduct Authority, minimum consumer protections for crypto deposits, and whether crypto could be used in land-based casinos.

A Gambling Commission spokesperson referred us to its webpage ‘Blockchain technology and crypto-assets’ and to a speech delivered by Executive Director Tim Miller at the Betting and Gaming Council AGM 2026.

The spokesperson said: “We don’t have anything further to add at the moment.”

For now, the regulator’s stance is settled. Crypto may be new to some corners of the gambling industry. The compliance expectations are not.