UKGC Ponders Crypto iGaming Sites as FCA Crypto Rules Move Toward Approval

HM Treasury is preparing to integrate crypto asset regulations into the Financial Services and Markets Act 2000, with a statutory regulatory proposal. It has been laid out to the Parliament, and the next step is for the houses to approve the law. If done, the crypto regulatory regime is expected to come into force by late 2027, and this could cause a seismic shakeup of the UK gambling sector. Because if crypto assets become regulated financial instruments under the law, then there is a possibility of introducing them to the UKGC regulated betting and online casino scene.

Executive director, Tim Miller, spoke at the Betting and Gaming Council Annual General Meeting, where he talked about the Autumn Budget, the Government’s Illegal Gambling Taskforce, and numerous other topical issues. But before finishing the speech, he touched on what could be a far more impactful subject

Leaving the best for last, he closed his speech by circling around potential regulated crypto in the UK, and said that the UKGC would start looking for a potential path forward, to make this a consumer payment option for licensed and regulated gambling in Great Britain. What seems like a small musing at the end of a fact-packed speech, could have massive implications for the future of the UKGC and crypto.

Miller’s Speech and Thoughts on Crypto

This meeting was hosted by the main trade body that represents all regulated betting and licensed iGaming operators in the UK, including licensed online casinos, bookies, and other gambling businesses. It brings together the operators and the regulators, to discuss key points and address keynotes. That was done at this meeting, covering recent changes in the gaming legislation, the eventual impacts of the Autumn Budget tax hikes, and the setting up of the independent, government run Illegal Gambling Taskforce. At the end of the speech, key speaker Tim Miller brushed on the ongoing legislative efforts to regulate crypto assets in the UK:

“In December 2025, the Government laid the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 before Parliament. If approved, this will bring cryptoasset within the FCA’s regulatory remit… that, as well as the growing appetite we see from punters, means we do now want to start looking at what the potential path forward would be to create a way for cryptoasset to be used as a consumer payment option for licensed and regulated gambling in Great Britain.”

He made it clear that the Commission is not going to set up any deadlines or start making hypothetical timelines, because the FSMA reforms have not yet been approved. Introduced late last year, they are going to be put to the Houses for approval. And if they are, then this new type of asset will be regulated by the Financial Conduct Authority (FCA). The earliest that could happen is in October 2027.

How Crypto Assets Will Be Regulated in the UK (Outside Gambling)

The FCA would classify crypto assets as “specified investments”, which would include select stablecoins, crypto derivatives tied to crypto assets (futures, perpetual swaps, and options contracts), and security tokens. Any firm that wants to trade, hold, provide custody, or deal with cryptoassets must register with the FCA and get authorisation. They will have to abide by the legislation made by the FCA, which will most likely cover:

• Anti-Money Laundering and Know Your Customer
• Financial Crime Prevention
• Consumer Protection
• Ongoing Supervision
• Financial Framework Requirements

Therefore, the types of firms that would need approval from the FCA for cryptoasset activities would include crypto brokers, stablecoin issuers, investment firms and crypto asset managers, firms offering crypto derivatives, crypto exchanges and trading platforms, and payment/settlement managing firms that use crypto.

Potential for UKGC to Integrate Cryptocurrencies

Everything crypto-related would be regulated by the FCA, whereas gambling falls under the purview of the Gambling Commission. There are a few different possible scenarios on how the two could potentially link up to regulate Bitcoin casinos and crypto bookmakers.

1. Making Crypto a Payment Method

The operator is regulated by the Gambling Commission, and they use a FCA-regulated payment partner. The partner will handle all incoming and outgoing crypto payments, but that is as far as the “crypto experience” goes. You can deposit crypto and withdraw crypto, but the sites convert the crypto instantly and display your winnings in GBP (or in converted crypto values). You cannot buy crypto on the site, there are no crypto trading features, and the only aspect of the site that is truly crypto friendly is the payment methods.

2. Operators Hold On-Platform Wallets

In this scenario, you can deposit your crypto into the platform, and it will not be automatically converted to GBP. The operator has the permissions to accept your crypto and even hold it in custodial wallets. You can then hold multiple crypto assets on the site, and use them to fund your gambling. However, you cannot trade crypto products, and you can only deposit/withdraw crypto transfers through FCA authorised vendors.

3. Operator Has Crypto Financial Products

This is the most crypto-friendly for players, but the most difficult to achieve from a regulation standpoint. The operators would need to have dual regulation and approval to pull it off. But if they are FCA authorised and meet the UKGC requirements, then these platforms can offer it all. You deposit crypto, you can trade crypto on the platform, and there may even be staking rewards on the site. They could even offer crypto-linked jackpots or volatility based-bonuses.

The only areas that would be very, very difficult to pull off are offering leveraged crypto trading products (margin and futures products). But as a player, these platforms have the basic features of a crypto exchange, but with betting and gambling products.

What is Possible

Creating complex dual regulation systems would be time consuming, and they could also drive up the licensing/operational costs for the gambling firms significantly. Having the first option is really the easiest, but it does not pass off as truly crypto-friendly.

The site would pass the responsibilities and the authorisation onto a payment service, and you will still play or bet using GBP. Finding the middle ground can prove tricky, and it will not be a straight roadmap.

Authorities That Already Licence Crypto iGaming Sites

But there are precedents that the UKGC can learn from. The most prominent example out there is the Curacao Gaming Authority, which was among the first to license crypto casinos and bookies. These are not just platforms that use third party vendors, but Bitcoin casinos that can support on platform wallets and can even provide token based loyalty schemes. Their regulatory oversight is looser than the UK, but they license many crypto-first iGaming platforms. Platforms which are unregulated in the UK. Perhaps a closer example is the Malta Gaming Authority, which uses distributed ledger technology frameworks.

Malta has recently reformed its MGA gaming licence structure. However, crypto operators do not need a separate crypto licence. Instead, they can manage crypto payments and provide full auditability of blockchain transactions. They can support on platform crypto wallets, but must segregate these wallet structures, and use approved third party custodians for compliance. This way, they can align with EU law on crypto assets. Other authorities that can license crypto casinos include:

• Gibraltar Gambling Commissioner
• Isle of Man Gambling Supervision Commission
• Kahnawake Gaming Commission
• Anjouan Finance Authority
• Philippine Amusement and Gaming Corporation
• Estonian Tax and Customs Board
• Alderney Gambling Control Commission

There are plenty, but most treat crypto as a payment channel, or have flexible policies that can only suit offshore sites, and not ones that run in domestic markets. Something that the UKGC does.

How Crypto Can Bring Players to the Regulated Market

These are the very authorities that license sites, which the UKGC is trying to pull UK gamers away from. Apart from Gibraltar, Alderney and the Isle of Man, the other authorities are not legally recognised in the UK. And the operators that hold multiple licenses, well, they cannot transfer their crypto products to UK customers because cryptoassets have not yet been legally categorised in the UK. For casinos right now, it isn’t even legal to offer crypto payment methods either.

By adding this function, the hope is that fewer UK gamers will turn to unregulated betting and gaming sites. Naturally, any potential UKGC licensed crypto gambling sites will not be able to provide all of the features that make these offshore sites so appealing.

They cannot forego the KYC procedures, skip out on the self-exclusion and responsible gambling enforcements, and they will still have to comply with the Gambling Commission’s safer gambling protocols. But adding cryptocurrencies could definitely increase the appeal of home brands and licensed gambling firms.

What Happens Next

The FSMA reforms, also called SI 2026/102, is now in the final stages. The legal commentators see this as an expected outcome, and not one that can pass or fail, and the House approval is just a ceremonial step to finalising the regulation. Given approval, the details will be chiselled out in 2026, in time for implementation in 2027.

The Commission would do well to start thinking about possible routes and solutions to allow crypto gaming and betting into the UK. But there is still lots of time, and within that frame, windows for ideas and procedures that could possibly see this becoming a thing. It is slowly turning into a question of when, and not if – something that will excite UK crypto gamers and punters.