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UK Regulator Considers Crypto Payments for Online Betting

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The United Kingdom’s Gambling Commission is evaluating whether cryptocurrency could function as a consumer payment option within licensed online gambling, as the country moves to bring crypto activity under a new regulatory regime led by the Financial Conduct Authority (FCA). Tim Miller, the commission’s executive director for research and policy, told attendees at the Betting and Gaming Council’s annual general meeting in London that policymakers want to map out “the potential path forward” for cryptoasset payments in Great Britain. He noted that, once the regime starts, regulated crypto activities would require FCA authorization under the Financial Services and Markets Act 2000. The licensing framework is targeted for 2027.

Key takeaways

  • The Gambling Commission is actively exploring a formal path to allow crypto payments for licensed gambling in Great Britain, as part of the FCA-regulated regime.
  • Any entities conducting regulated crypto activities would need FCA authorization under FSMA once the regime commences.
  • The commission ties crypto payments to consumer protection, citing evidence that crypto is among the top searches leading British bettors to illegal sites.
  • Even if crypto payments are permitted, this would not automatically subject casinos to full UK regulation, given challenges around customer suitability checks.
  • The FCA has published a final consultation with 10 proposals for crypto markets, with the licensing regime slated to go live in October 2027 and an application window expected to open in September 2026.

Tickers mentioned:

Sentiment: Neutral

Market context: The UK’s approach reflects a broader movement toward regulated crypto services as policymakers weigh consumer protections and AML safeguards amid evolving crypto legislation worldwide. The FCA’s upcoming licensing framework signals tighter oversight that could influence how payment rails, operator compliance, and consumer protections evolve across Europe and beyond.

Why it matters

The potential acceptance of cryptocurrency as a legitimate payment option within licensed gambling could reorder the onboarding experience for players and redefine how operators manage risk. If crypto payments are permitted within a regulated framework, operators would likely have to implement rigorous know-your-customer (KYC) and due-diligence processes to ensure that crypto flows do not bypass existing controls. This shift could also influence the competitive dynamics of online gambling, encouraging platforms to invest in compliance infrastructure to win consumer trust in a landscape that remains under intense regulatory scrutiny.

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regulators emphasize consumer protection and the integrity of the market. The commission’s stance reflects a cautious acknowledgement that crypto payments may offer consumer benefits—such as faster settlement options and alternative funding channels—while also raising new questions about identity verification, transaction tracing, and the risk of financial harm if illicit actors exploit crypto rails. The idea is not to hastily embrace digital assets as a mainstream payment method but to evaluate a measured, regulated pathway that aligns with the UK’s broader financial oversight framework. The ultimate objective is to reduce the exposure of legitimate bettors to illegal operators while ensuring that any crypto-enabled gambling activity sits on a robust licensing backbone.

This discussion sits at the intersection of technology, consumer protection, and public policy. It mirrors a wider regulatory trend in which governments are testing how digital assets can coexist with traditional financial safeguards. The UK’s approach—balancing innovation with precaution—adds to a growing chorus of inquiries across jurisdictions that are trying to determine whether crypto payments can be integrated into regulated consumer sectors without undermining the rule of law or consumer protections.

What to watch next

  • The FCA’s final consultation on crypto market proposals and the timeline for implementing the regime, with the licensing gateway expected to open in September 2026 and the regime going live by October 2027.
  • The Industry Forum’s recommendations on the practical path forward for crypto payments in licensed gambling, as the regulator weighs feasibility and safeguards.
  • The ongoing regulatory developments, including potential UK government or parliamentary inquiries and related activity around stablecoins and broader crypto regulation.
  • Any concrete steps operators take to prepare for a regime that could permit crypto payments, including enhanced KYC, AML controls, and consumer protection measures.

Sources & verification

  • Gambling Commission – Tim Miller’s remarks at the Betting and Gaming Council AGM in London (https://www.gamblingcommission.gov.uk/news/article/bgc-agm-2026-tim-miller-speech).
  • UK crypto rules and regulatory outlook — final FCA consultation on crypto markets (Cointelegraph article referencing the FCA’s proposals) (https://cointelegraph.com/news/uk-dodges-us-malaise-regulator-new-crypto-rules).
  • FCA licensing timeline for cryptoassets, including September 2026 application window and October 2027 live date (https://cointelegraph.com/news/uk-crypto-september-2026-fca-licensing-gateway# and https://www.fca.org.uk/firms/new-regime-cryptoasset-regulation/how-gateway-will-operate).
  • Related regulatory context — UK Lords’ inquiry into stablecoins (Cointelegraph article) (https://cointelegraph.com/news/uk-lords-open-stablecoin-regulation-inquiry).

Crypto payments in licensed gambling: charting a regulatory path

The conversation around crypto-enabled payments in Britain’s regulated gambling sector has shifted from a speculative debate to a structured policy inquiry. At the heart of the discussion is a governance framework that would bring crypto activity under the FCA’s umbrella, ensuring that any use of digital assets for consumer payments remains within a tested, transparent boundary. Tim Miller’s remarks signal a willingness to explore practical steps rather than to provide a rushed verdict on crypto as a payment method. The Betting and Gaming Council event served as a platform to translate high-level regulatory intent into a concrete, industry-facing inquiry.

Under the proposed regime, entities conducting regulated crypto activities would need to secure authorization from the FCA under the FSMA when the regime becomes operative. This requirement underscores the government’s intent to avoid creating a parallel, under-regulated ecosystem for crypto gambling activities. The emphasis on licensing suggests that operators would be expected to meet the same or higher standards of consumer protection, anti-money laundering, and risk management as traditional payment providers. The objective is not only to deliver a lawful pathway for crypto payments but also to ensure that consumer safety remains the cornerstone of any new financing mechanism.

“And 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.”

The debate also touches on a broader risk-reward calculus. On one hand, crypto payments could align Britain’s gambling market with evolving digital finance technologies, potentially offering faster settlement times and new user experiences. On the other hand, regulators remain vigilant about the possibility of illicit platforms operating on the periphery of legality. The Gambling Commission’s data showing crypto as a leading entry point to illegal sites reinforces the need for robust controls if such payments are to be legalized within licensed venues. Miller’s comments suggest that any forward-looking framework would be designed to close gaps that currently allow illicit access, rather than to normalize risky activity without guardrails.

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Crucially, authorities are careful to separate the act of permitting crypto payments from the broader question of licensing. The fact that crypto payments could be allowed does not automatically imply a broader expansion of regulatory reach over operators. Instead, regulators appear intent on upholding rigorous customer suitability checks and ongoing oversight, which could complicate how crypto-based payments are integrated. This nuance matters for operators weighing whether to pilot crypto-enabled deposits and withdrawals, as well as for investors tracking how regulatory risk might shape the value proposition of gaming platforms that move to accept digital assets.

From a market perspective, the UK’s stance sits within a global mosaic of crypto regulation, where authorities are increasingly seeking to harmonize innovation with accountability. The FCA’s licensing roadmap, coupled with related inquiries in other domains such as stablecoins, creates a framework that could influence the pace at which crypto-friendly payments scale in other regulated sectors. While the path to full integration remains under discussion, the UK’s approach signals that crypto as a payment option in gambling is not a hypothetical fantasy; it is a policy question being actively worked through by regulators, lawmakers, and industry stakeholders.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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CFTC Staff Set Crypto Collateral Standards for Market Participants

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The U.S. Commodity Futures Trading Commission (CFTC) has sharpened its stance on using crypto as collateral in derivatives markets, releasing updated guidance that clarifies how crypto assets can be deployed within a pilot program launched last year. A Friday notice from the agency’s Market Participants Division and Division of Clearing and Risk responds to FAQs that emerged from December staff letters and lays out the operational and risk parameters for futures commission merchants (FCMs) participating in the pilot.

In its notice, the CFTC reminded FCMs that to participate they must file a formal notice with the Market Participants Division, including the date on which they will begin accepting crypto assets from customers as margin collateral. The guidance aims to harmonize crypto collateral practices with a broader regulatory framework being developed in coordination with the Securities and Exchange Commission (SEC), as the two agencies outline a more unified approach to crypto oversight.

Key takeaways

  • Capital charges for crypto collateral align with SEC oversight: 20% for Bitcoin and Ether positions, and 2% for stablecoins used as collateral.
  • Initial three-month window restricts eligible collateral to Bitcoin, Ether, or stablecoins, with weekly reporting requirements and a prompt notice for significant cybersecurity or system issues.
  • After three months, other crypto assets may be accepted as collateral, subject to ongoing risk and reporting standards.
  • Residual interest in customer segregated accounts may be funded only with proprietary payment stablecoins; other tokens cannot be used for that purpose.

Operational guardrails and the three-month sprint

The notice makes clear that the pilot is designed with risk controls in mind. Futures commission merchants who wish to participate must submit a formal participation notice that includes the anticipated start date for accepting crypto as margin collateral. The three-month initial phase places strict limits on the types of crypto eligible for collateral, restricting it to Bitcoin, Ether, and stablecoins. During this period, FCMs are also required to file weekly reports detailing the total crypto holdings across customer account types and to promptly report any material cybersecurity or system issues.

The three-month horizon serves a dual purpose. It allows the CFTC to observe how crypto collateral behaves in real-time market conditions under a controlled regime, while enabling market participants to build processes around risk management, custody, valuation, and operational controls. After the initial period, the rulebook opens the door to additional digital assets, expanding the universe of potential collateral as regulators gain confidence in the framework.

What changes for market participants and tokenized markets

Beyond the three-month mark, the pilot could permit a broader spectrum of crypto assets to be used as collateral, provided they meet the CFTC’s risk, custody, and governance standards. The notice also clarifies several nuanced points about where crypto and stablecoins can—and cannot—serve as collateral. Notably, crypto and stablecoins cannot be used as collateral for uncleared swaps. However, swap dealers may deploy tokenized versions of eligible assets for collateral if they satisfy regulatory requirements and preserve the same rights those assets confer in their traditional form.

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Derivatives clearing organizations (DCOs) have their own set of allowances. They may accept crypto and stablecoins as initial margin for cleared transactions, again contingent on meeting CFTC standards related to minimal credit, market, and liquidity risks. Finally, as to residual interest in customer accounts, the guidance specifies that only proprietary payment stablecoins may be deposited for that purpose, excluding other cryptocurrencies from this particular use case.

In framing these rules, the CFTC underscored its intent to align its approach with the SEC’s ongoing crypto framework. The agency’s notice notes that capital charges for crypto collateral will be consistent with SEC practices, signaling a coordinated path rather than a patchwork of standalone rules. The collaboration between the agencies is part of a broader effort to create a stable, transparent regulatory environment that can accommodate the 24/7 nature of crypto markets while enforcing prudent risk controls.

Participants will be watching closely how this evolves in practice. The pilot’s design—beginning with widely traded assets like BTC, ETH, and stablecoins—reflects a cautious, first-step approach to integrating digital assets into traditional margin concepts. It also signals how regulators intend to balance the benefits of crypto-native features, such as rapid settlement and continuous trading, with the need to manage financial risk and ensure market integrity.

For traders, funds managers, and infrastructure providers, the framework offers clarity on how crypto collateral might be used in the near term. It also highlights the kinds of operational capabilities that firms must develop: robust custody solutions, reliable valuation methodologies for volatile assets, strong cybersecurity postures, and precise reporting protocols to monitor crypto holdings in customer accounts.

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Industry participants will also be watching for details on how tokenized assets and stablecoins will fare under the evolving rules. Tokenization can, in theory, unlock more flexible collateral options, but it requires careful attention to governance, settlement finality, and legal rights. The CFTC’s emphasis on risk controls, alongside explicit limitations on residual interest and uncleared swaps, suggests a measured approach to expanding collateral acceptance while preserving market safety nets.

Overall, the guidance reinforces a midterm view: a calibrated expansion of crypto collateral capabilities that can gradually broaden the collateral toolkit for U.S. derivatives markets, anchored by risk-management discipline and regulatory alignment with the SEC.

Investors and market participants should monitor how this pilot progresses in the coming months, including any updates to asset eligibility, reporting requirements, or capital-charge methodologies. The three-month checkpoint will likely spur conversations about whether additional assets should qualify, how valuation and custody standards will be harmonized, and what that means for liquidity and funding costs in crypto-backed trading strategies.

As regulators continue to shape the playbook, the core question remains: can a robust, well-regulated framework unlock crypto collateral’s potential while preserving financial stability? The CFTC’s latest notice positions the industry at a pivotal juncture, where clarity and risk controls could unlock broader adoption in the years ahead.

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For now, market participants should prepare for continued regulatory alignment with the SEC, stay alert to any shifts in asset eligibility, and ensure their internal controls and reporting capabilities meet the forthcoming standards if they plan to participate in the pilot.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Nevada Judge Blocks Kalshi From Operating in State

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Nevada Judge Blocks Kalshi From Operating in State

A Nevada judge has temporarily blocked Kalshi from operating in the state, finding that state authorities are reasonably likely to prevail in a legal fight over whether the company’s event contracts violate Nevada gambling laws.

Carson City District Court Judge Jason Woodbury issued a temporary restraining order on Friday, siding with a Nevada Gaming Control Board motion to block Kalshi from operating in the state for 14 days.

“Prediction markets, to ​the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public,” Nevada Gaming Control Board Chair Mike Dreitzer said in a statement to Reuters.

Kalshi did not immediately respond to a request for comment.

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The court’s decision comes after a federal appeals court on Thursday denied an emergency request by Kalshi to stay a federal court proceeding, allowing Nevada’s regulators to take action.

Nevada bars sports, election and entertainment event contracts

In his order, Judge Woodbury wrote that Kalshi was banned from offering sports, election and entertainment-related event contracts in Nevada.

He added that, in the record of the early stages of the case, such contracts are considered a “sports pool” under Nevada law, which Kalshi was not licensed to operate.

Source: Daniel Wallach

The Nevada Gaming Control Board sued Kalshi last month, asserting the company needed to be licensed by the state in order to offer its sports event contracts.

Kalshi argued that its contracts are under the exclusive jurisdiction of the Commodity Futures Trading Commission, an agency that has backed prediction markets that are fighting in multiple state courts over accusations of offering illegal gambling.

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“The question of federal preemption in this regard is nuanced and rapidly evolving,” Judge Woodbury wrote in his motion, rejecting Kalshi’s argument. “At the moment, the balance of convincing legal authority weighs against federal preemption in this context.”

Related: Kalshi CEO fires back against Arizona criminal charges as ‘total overstep’

Judge Woodbury scheduled a hearing on April 3 to consider a motion for preliminary injunction against Kalshi.

Kalshi is being sued, or has launched its own legal action, against multiple states that have accused the prediction market of operating without a state license.

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A Massachusetts state judge banned Kalshi from offering sports event contracts earlier this year, which was lifted after Kalshi appealed the decision.

On Tuesday, Arizona filed criminal charges against Kalshi, with the state’s Attorney General Kris Mayes alleging Kalshi is “running an illegal gambling operation,” which Kalshi CEO Tarek Mansour called a “total overstep.”

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