Crypto currencies have certainly risen in popularity which also meant that the demand for them gradually increased. Betting sites online tend to have a hybrid system (crypto and fiat) or crypto only system where only altcoins – Bitcoin, Tether, Ethereum and more – are accepted. Check out this UK Ethereum casinos guide to help you understand UK crypto gambling more.
In the UK, Bitcoin and other cryptocurrencies are presently not regulated, which means that there are no specific laws that would concern crypto currencies or gambling with crypto, and cryptocurrencies are not considered to be a legal tender. Gambling with cryptocurrencies is technically legal in the UK, but of course, there are some things worth mentioning.
The UK Gambling Commission, UKGC, is the main authority on regulating gambling. In order to provide a safe environment and maintain fairness in regards to the players as well as operators, the UKGC has implemented policies for operators where they must do business in such a way where all crypto exchanges meet certain criteria in regards to transfer of funds and must adhere to anti-money laundering regulations.
The UK Gambling Act of 2005 updated and modernized the UK’s approach to online gambling. It differentiates between six forms of gambling, and each one of these has some distinct laws. These six types of gambling are: betting (sports and esports betting both belong to this category), bingo, casino, arcades, gaming machines and lotteries.
Real money betting platforms must have a license from the UKGC, while some forms of lotteries do not require a license at all in order to operate. Gaming machines are further divided into several categories, as are casinos (online and brick-and-mortar casinos). They naturally do require a license.
As of 2021, all companies that offer services related to crypto (crypto exchanges, for example) are required to be registered with the FCA, Financial Conduct Authority.
The regulations mentioned indeed provide a fair level of control when it comes to doing business with crypto. For example, in the summer of 2021, Binance, the largest crypto exchange and one of the fastest in the world, was banned from operating within the UK due to unregistered crypto exchanges.
Online casinos that are operating from outside of the UK naturally do not have to adhere to laws set by the UKGC, and UK players can of course gamble at those casinos (if they do not restrict UK residents). However, it is worth noting that while gambling regulations set by the UKGC can appear restrictive, they are made with the best intentions in mind that only benefit the players since regulated gambling means that they will not be putting their money in the hands of shady, unlicensed casinos.
While there is some restriction overall when it comes to crypto gambling and doing business with crypto, as one interesting fact let us note that Bitcoin ATMs are perfectly legal in the UK, so long as they are registered and regulated by the FCA, of course. In London alone there are over 100 Bitcoin ATM machines and in total the UK owns well over 200 BTC ATMs.
