UK Gambling Commission clarifies digital currency rules

The UK Gambling Commission updated its codes of practice issued this July, outlining how licensees can implement appropriate policies for so-called cash equivalents.

UK.- The UK Gambling Commission (UKGC)  has updated its codes of practice issued this July, outlining how licensees can implement appropriate policies for “cash equivalents,” a definition under which digital currencies are captured.

The UKGC claims that the intention of the updated language is to protect consumers and mitigate financial crimes such as money laundering. The update is scheduled to come into force on 31st October.

“Licensees, as part of their internal controls and financial accounting systems, must implement appropriate policies and procedures concerning the usage of cash and cash equivalents (eg bankers drafts, cheques and debit cards and digital currencies) by customers, designed to minimize the risk of crimes such as money laundering, to avoid the giving of illicit credit to customers and to provide assurance that gambling activities are being conducted in a manner which promotes the licensing objectives,” reads the UKGC report.

The comments regarding this issue come just a month after the UKGC highlighted digital currencies as an “area for continuing focus” in its latest annual report. Back then, the UKGC announced its plans to continue weighing how digital currencies would fall under its mandate to ensure fair gaming practices.