“Crypto needs to be regulated like gambling”, UK said

The UK Gambling Commission has warned that growing crypto use exposes regulatory gaps and new risks. Crypto raises questions about licensing, anti-money laundering controls and the exposure of younger demographics.

How urgent is the gambling Commission’s warning about crypto?

At the International Association of Gaming Regulators (IAGR) conference on 24 October 2025, CEO Andrew Rhodes said the need to address crypto is now “maybe 12 months [or] 24 months away,” after previously describing it as five years off.

This timeline signals a faster regulatory response to emerging market risks, especially where existing rules were written for fiat flows.

The Commission is calling for clearer guidance and quicker action to reduce the illegal crypto market and to shore up consumer protections. For additional background on the UK’s regulatory approach, see our article about “UK crypto innovation at risk: leaders warn on regulation and AI.

What are the challenges for a crypto license?

How does UK gambling regulation intersect crypto?

Current licences are built for fiat-based payment rails, which leaves uncertainty over how to validate crypto operators. Firms seeking a crypto casino license face unclear conditions on player checks, custody and transaction monitoring.

That gap risks fragmented enforcement and could push activity into the illegal crypto gambling market unless regulators set explicit paths for compliance.

What are the crypto risks and traceability concerns?

Regulators warn that some crypto assets can complicate source-of-funds checks and cross-border tracing, increasing the potential for money laundering and illicit financing.

Enhanced transaction monitoring, on-chain forensics and firmer KYC expectations are likely to be central to any response.

More on the intersection of compliance, traceability, and the challenges regulators face can be found in Crypto donation sparks scrutiny of Reform UK funding and AML oversight.

Independent compliance specialists say bridging technical gaps will require both updated regulation and investment in analytic tools to restore traceability.

For a technical perspective on crypto traceability, read Can Crypto Be Traced? The Truth About Blockchain Privacy and Transparency.

How will UK crypto regulation affect its usage?

The Commission noted rising crypto adoption among people under 40 and warned this could create a generational cohort outside the legal market. That trend raises safeguarding, advertising and affordability questions for licensees.

Operators should start tightening controls now, and regulators will likely demand clearer proof-of-funds and stronger age-verification measures.

For context, the Gambling Commission has published ongoing reviews and commentary as it considers next steps: Gambling Commission statement on reforms