The essential need to address the surge of cryptocurrency adoption is closer than previously forecasted, warned UK Gambling Commission (UKGC) CEO Andrew Rhodes.
Speaking during his CEO briefing, Rhodes described the “pressure building within the system” as a new demographic embraces cryptocurrencies.
He emphasised that a conversation on the rise of cryptocurrencies thought to be five years down the line is now no more than two, with growing numbers of a new generation utilising digital currency.
“The reality is, in some years to come, there will probably be a significant cohort of consumers who use cryptocurrencies because that is what they’re accustomed to. It is a demographic shift that will find they have no place in the legitimate industry because of the currency they use,” stated Rhodes.
Crypto casinos are largely the preserve of black and grey markets, and Rhodes was quick to confirm that the UKGC is not committing to start licensing crypto within the UK’s regulated gambling ecosystem.
Instead, he said that any changes must be led by government-level discussions, as “once you open that door, you cannot close it”.
“The reality is, and this growth in those demographics means, I don’t think governments can ignore that pattern,” he added.
The UK Government has already set out its intentions to align with the likes of the US and develop a thriving environment for cryptocurrency under a ‘Plan For Change’, unveiled by Chancellor Rachel Reeves in April.
As part of this process, the UK’s Financial Conduct Authority has already begun to draft legislation to regulate cryptoassets, and the Bank of England recently published a consultation paper setting out its proposed regulatory regime for sterling-denominated stablecoins.
Speaking at the UK Fintech Week summit, Reeves said: “Through our Plan for Change, we are making Britain the best place in the world to innovate – and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK.”
Once this is achieved, it would follow that various authorities, such as the UKGC, would need to consider how the UK’s crypto laws would fit into their own regulatory frameworks.
Super Group unveils stablecoin plans
Although there is no doubt that the industry as a whole is awaiting the future of crypto within gaming, one company with a particularly sharp focus on the UK government’s developments will be Super Group.
Last week, Betway’s parent company announced plans to launch ‘super coin’, a stablecoin pegged to the South African rand.
Initially targeting customers using Betway SA, the group has made it clear that South Africa is merely a starting point, rather than a final destination, for its adoption of crypto.
Speaking to investors during the group’s Q3 earnings call, CEO Neal Menashe confirmed that the company’s long-term plan is to expand Super Coins’ availability, subject to local regulatory frameworks.
“It’s all the same technology, we’ve just got to get on to those relevant exchanges in the countries we decide to go and that the laws of that country allow us to do it,” he told investors.
Menashe also pinpointed Africa as the ideal starting point for its crypto venture due to the expense of banking in the region, citing fees as high as 3% to 6% of deposits.
By encouraging customers to use stablecoins, Super Group is seeking to bypass traditional infrastructure and significantly cut costs.
