Home Business Insights & Advice Latest updates From UK Gambling Commission regarding cryptocurrencies

Latest updates From UK Gambling Commission regarding cryptocurrencies

by Sarah Dunsby
27th Nov 23 11:02 am

Cryptocurrency use in the UK remains a subject of much debate. However, three million or so Brits frequently use digital money and are constantly looking for new ways in which they can utilise their crypto assets.

The UK Gambling Commission’s stance

The first issue to note here is the Gambling Commission hasn’t changed its stance on cryptos as a payment method for gambling sites. This regulatory betting authority keeps strict control over the payment methods that can be used by British gamblers, with cryptocurrencies currently not allowed.

However, recent news stories about cryptos and gambling have maybe muddied the water slightly. This is because there have been attempts to classify the use of cryptocurrencies as gambling, regardless of what they’re used for. It’s an issue that arose when the Treasury Select Committee brought it up earlier in 2023.

In July this year, Financial Services Minister Andrew Griffith pointed out that that wasn’t an option, since it would put the UK on a different path to regulators in other parts of the world while not actually solving any of the issues. Therefore, at the moment there have been no changes in the regulations around cryptos.

What about in other parts of the world?

While you won’t find any casinos authorised by the UK authority that allow the use of virtual tokens like Bitcoin and Litecoin, this isn’t the case everywhere. With a variety of different regulatory bodies creating their own rules across the planet, some of them are happy for the sites they regulate to accept cryptos.

But how does the acceptance of cryptos affect the market in other countries and regions? They still look a lot like the British market in many ways, as most casinos have similar welcome offers for new players to collect, which typically include bonus cash and, in some cases, free spins. Yet, a variety of tokens are often accepted by the new casino sites that offer deals of this type, as well as more conventional banking methods such as e-wallets and debit cards. They’re rated according to the overall package, with the number of payment methods they accept playing a part in the rating.

What happens next?

At the time of writing, there are no signs of the UK Gambling Commission having plans to allow the use of cryptocurrencies. With the overall area of cryptocurrency use still provoking a lot of debate, it seems possible that the regulators are waiting to see what happens in this respect.

It’s expected that the formal legislation needed to regulate the crypto industry in the UK will be presented in Parliament before the end of the year so that laws are in place in 2024. The government has taken into account experts from a range of areas such as fintech and traditional financial services, so we should see a clearer way ahead once this is released.

At the moment, the Gambling Commission has maintained its stance on not allowing cryptos to be used for gambling purposes, but we’ll need to wait a little longer to see if the new proposed regulations cause them to reconsider this view.

 

Please play responsibly. For more information and advice visit https://www.begambleaware.org

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