TL;DR
- Andrew Rhodes (UKGC) shortens the regulatory timeline from 5 years to just 12-24 months.
- The lack of clear crypto licenses pushes activity to the illegal market.
- Regulators will focus on KYC, on-chain analysis, and proof-of-funds.
The United Kingdom Gambling Commission (UKGC) has accelerated its plans for the regulation of cryptocurrencies in gambling. Andrew Rhodes, the entity’s CEO, stated at the International Association of Gaming Regulators (IAGR) conference on October 24, 2025, that the need to address crypto is now “perhaps 12 or 24 months away.”
This represents a significant change from the previous estimate, which placed this horizon at five years. The new timeline underscores a faster regulatory response to emerging market risks, especially where existing rules were designed only for fiat money flows.
The urgency stems from the legal uncertainty facing operators. Current licenses are designed for fiat payment rails, leaving a void on how to validate crypto operators.
Companies seeking a “crypto casino license” face unclear conditions regarding player verification, fund custody, and transaction monitoring.
The UKGC warns that this gap encourages fragmentation and could push activity toward the illegal crypto gambling market unless regulators establish clear paths for compliance.
Traceability Challenges and AML Risk
A central point of concern is traceability risks. Regulators warn that some crypto assets complicate source-of-funds (KYC/AML) verifications and cross-border tracking, increasing the potential for money laundering and illicit financing.
Independent compliance specialists suggest that bridging these technical gaps will require both updated regulation and significant investment in on-chain analysis (blockchain forensics) tools to restore traceability.
The Commission also highlighted the growing adoption of crypto among people under 40, warning that this could create a generational cohort operating outside the legal market. This trend raises serious questions about consumer safeguarding, advertising, and affordability for licensees.
Given the impending regulation of cryptocurrencies in gambling, regulators are expected to demand enhanced transaction monitoring and more robust age-verification measures. Operators are advised to begin strengthening their proof-of-funds controls immediately.
