What Are the Latest Laws on Gambling with Crypto Around the World?

As digital assets reshape how players wager online, governments worldwide are scrambling to establish coherent regulatory frameworks. Let’s explore how different countries are approaching this digital gambling revolution.

The Rise of Platforms That Allow Players to Deposit Using Cryptocurrency

There’s no denying the appeal of crypto gambling. Players who deposit using cryptocurrency enjoy enhanced privacy, reduced transaction fees, and significantly faster withdrawal times than traditional payment methods. Since 2022, 43% of gamblers have registered with Bitcoin casinos, with Ethereum and Tether ranking as the most preferred gambling tokens.

As such, the benefits have given rise to many crypto-friendly gambling sites, most of which are subject to entirely different regulatory environments depending on where they’re based. For operators, blockchain technology enables transparency in transactions and lowered operational costs—two benefits that are becoming hard to ignore in a competitive marketplace.

United Kingdom

The Gambling Commission in the UK is one of the most organized gambling frameworks in the world. While not explicitly endorsing cryptocurrency gambling, the Gambling Act permits licensed operators to accept crypto deposits, provided they implement robust anti-money laundering protocols. This middle-ground approach has made the UK a relatively stable environment for crypto gambling innovation.

Recent guidance from the UKGC requires operators to verify the source of crypto funds and implement additional KYC procedures for transactions exceeding £2,000. The commission has mandated that operators convert cryptocurrencies to fiat values in player accounts to ensure transparency and mitigate consumer volatility risks. 

United States

The United States has the most intricate regulatory framework among all nations. Since each state defines gambling laws, crypto-gambling operates within multiple disjointed environments. Nevada is initiating the development of regulatory structures for Bitcoin-based casinos while Utah enforces complete gambling bans for all payment types. American players have turned to offshore platforms due to inconsistent regulations across different states.

Malta

Malta has positioned itself as the global hub for crypto gambling operations. The Malta Gaming Authority was among the first regulators to establish a Blockchain Sandbox Framework, allowing operators to test crypto gambling products in a controlled regulatory environment. This forward-thinking approach has attracted numerous operators to develop their headquarters on the Mediterranean island.

In 2023, Malta updated its regulatory framework with the Virtual Financial Assets Act, which provides specific guidelines for crypto gambling operators. The MGA now issues specialized licenses that address blockchain-specific concerns such as smart contract auditing and cold storage requirements. 

To learn more about regulations, look at our Europe crypto tax guide. 

Asia

China maintains one of the world’s strictest stances, with comprehensive bans on both cryptocurrency transactions and most forms of gambling. Neighboring Japan is legalizing cryptocurrencies while maintaining tight restrictions on gambling activities that include digital assets.

South Korea presents a unique case, allowing foreigners to access gambling services while prohibiting citizens from participating—a restriction that extends to crypto gambling platforms despite the country’s otherwise progressive stance on blockchain technology.

The Future of Crypto Gambling Regulation

As blockchain technology evolves, regulators face mounting pressure to develop frameworks that protect consumers without stifling innovation. The most successful approaches will likely involve collaboration between gambling authorities, financial regulators, and industry stakeholders.

For players navigating this complex landscape, due diligence remains essential. Understanding the regulatory environment of both your jurisdiction and the platform you’re using represents the safest path through the current regulatory uncertainty surrounding crypto gambling.

What remains clear is that cryptocurrency has permanently altered the gambling landscape. How regulators respond to this change will shape the industry for decades to come.