Crypto Casino
Torrent Gear
How crypto casinos and their licenses are regulated
Crypto Casino is not a separate type of business, but an online gambling operator that accepts/pays funds in digital assets (BTC, ETH, stablecoins, etc.). Regulators trigger a double control zone here: (1) gambling laws and (2) virtual asset regulations (VASP/AML). As a result, the requirements depend on the jurisdiction: somewhere cryptocurrencies are allowed under additional conditions, somewhere they are directly prohibited for deposits.
Approach Map: Key Jurisdictions
Malta (MGA)
MGA allows the use of DLT assets in gambling with prior approval: the operator must submit an application, describe the asset class and AML/KYT processes. Under the new policy, VFAs are equated to fiat by appeal (the previous sandbox limits have been removed), but MGA permission is required.
UK (UKGC)
UKGC emphasizes increased expectations for operators working with crypto assets (reporting, compliance). At the same time, the regulator directly indicates: it is illegal to accept cryptocurrency from consumers for deposits in the UK - this is important for brands operating in the GB market.
Isle of Man (GSC, OGRA)
The OGRA gambling license allows crypto models subject to AML/KYT. GSC practice distinguishes permissible turnover schemes (for example, crypto-in/crypto-out, p2p, etc.) and at the same time excludes the "crypto-in → fiat-out" model (at the time of the corresponding note). There is an updated AML guide with a focus on virtual assets and control benchmarks.
Curaçao (LOK, new regulator)
Since the end of 2024, a reformed LOK regime has been in effect with a transition to state issuance of licenses and enhanced compliance (instead of the "master licenses" of the past). In terms of crypto - requirements for AML/KYT and transparency are expected/introduced; the approach is recorded in the new rules and materials of the regulator.
International standards: FATF and Travel Rule
Even with a loyal license, the operator falls under the FATF standards for virtual assets and VASP. Key: risk-oriented approach, cases "red flags" and Travel Rule - transfer of identification data when transferring between VASPs. Regulators directly refer to these documents as a baseline of verification.
Crypt models: what regulators check
1. Fiat-in/Fiat-out (without crypto) is a classic, out of theme.
2. Crypto-in/Crypto-out - the player deposits and receives in the same coin; hard KYT, blockchain analytics, sanctions/mixer control. It is allowed in IoM and a number of other modes under conditions.
3. Crypto-in → conversion → Crypto-out - allowed with transparent conversion/rate logic and volatility accounting.
4. Crypto-in → Fiat-out - individual regulators do not license (IoM - "no" for this model; others may differ).
5. Fiat-in → Crypto-out is almost always questionable due to the risks of laundering/cashing out.
"Dual" licensing: gambling license + VASP status
If the operator himself holds the wallets of the players or makes a conversion, often a registration/VASP license (or other status of a service provider with virtual assets) is required plus to the gambling license - this is about KYT, storage of funds, Travel Rule, reporting. Formally, this is not called "VASP" everywhere, but in fact - an additional layer of requirements (supervision of the financial regulator, procedures to suspend/block suspicious transfers). The basis is FATF standards and local implementations.
Compliance block: what a crypto casino must be able to
KYC/EDD/SoF/SoW: Verification of identity and source of funds, especially for VIP/large amounts.
KUT/blockchain analytics: address screening (sanctions, darknet, mixers, high-risk exchanges), transaction/cluster scoring.
Travel Rule: data exchange between VASPs during threshold transfers (in stablecoins - also).
Token policies: what assets are permissible (often - MTC/ETN/stablecoins with high volume and liquidity).
Custody: separate storage of funds (hot/cold wallets), multisig, limits, withdrawal schedules.
Sanctions and geo-restrictions: block by country/PEP/SDN, filters by BIN/ASN/VPN.
Reporting: STR/SAR, compliance solution logs.
Consumer protection (RG): limits, timeouts, self-exclusion, ADR - as for fiat.
Product and UX: what changes due to crypt
Volatility and "account currency": regulators may require fixing the balance in the reference currency (fiat equivalent) to calculate RG/AML limits.
"The same currency for entry/exit": a popular requirement is that you cannot deposit in one coin and request withdrawal in another (reduces the risks of laundering).
Transparency of rates: if there is a conversion, the source of prices, spread, fixation point (at deposit/rate/withdrawal) are indicated.
Deadlines and limits: due to KYT and Travel Rule, additional checks and "cooling" for conclusions are possible.
Where are the "thin spaces" and why the license is more important. "Io in the domain"
UK: Crypto deposits cannot be accepted for UK consumers - brands with UK targeting need a separate fiat shop window and geo-locks.
EU/EEA (Malta): it is possible with the approval of the MGA, as a rule - equating VFA with fiat according to AML controls and accounting.
IOM: clearly regulated models, crypto-in/fiat-out prohibition.
Curacao: there is a transition to LOK with tougher supervision and direct licenses through the state regulator.
The license "for someone once" or under someone else's "master" no longer works as a shield: banks/PSP and partners ask specific policies for virtual assets, KYT and Travel Rule.
Checklist for operator
Law and licenses
A market and jurisdiction where the crypto model is legal is chosen; gambling license +, if necessary, VASP status.
The policy of admitted assets and conversions; "input = output" by currency, if required by the regulator.
AML/KYC/KYT
KYT provider (s), escalation rules, Travel Rule integration, sanction filters.
EDD/SoF/SoW triggers; solution logs and STR/SAR.
Technical safety and storage
Custody: multisig, limits, hot/cold wallets, access logs.
TLS 1. 2/1. 3, HSTS, CSP; protection of Web3 integrations (signatures, replays, allow-list RPC).
Player protection
RG instruments, limits in the reference currency, transparent rates/commissions.
ADR/complaints procedure; understandable T&C on crypto ads and conclusions.
Checklist for the player
Check the jurisdiction and license (MGA/IOM/, etc.), as well as the rules for crypto deposits in your country (in the UK - prohibition).
Look at T&C: what coins are accepted, what coin will have a conclusion, courses and commissions, terms of checks.
Make sure that the deposit/withdrawal goes through the official addresses (be careful with phishing), turn on the 2FA/Passkeys.
The option "brought in the crypt - brought in the fiat" may not be available/illegal - look for the "same-currency rule."
FAQ (short)
Do I need a separate "crypto license"?
Not usually. Need a gambling license + (if the operator himself holds wallets/conversion) - regulation as VASP/analogue. Grounds - FATF standards and local laws.
Why can they delay the withdrawal in the crypt?
KYT, Travel Rule и EDD. The regulator obliges to check the sources/chains of transactions.
Where is the easiest way to get a "crypto-friendly" license?
That's changing. Now MGA (as agreed), IoM (clear models), Curacao (LOK reform) have a practical framework. Check for fresh guides.
Crypto casino regulation is the addition of two modes: gambling and "virtual assets/AML." In practice, this means: correct jurisdiction and license, KYT and Travel Rule, understandable token/conversion rules, custody control and standard player protection (RG/ADR). It is important for operators to build a process "like a bank," and for players not to look at. io in the domain, but for a real license and crypto-clad policy in your country.