Here at GoldBitcoinCasino.com, we are aware that we have readers who come here looking for information regarding online Bitcoin casinos from all over the world. As the Internet is a global, transnational tool, it is only normal that this is the case. There’s also a great wealth of information out there and sometimes it can be hard to sift through it all to find the relevant information that we are looking for. As such, we have written this piece in a bid to gather together the information regarding Bitcoin’s current status in a chosen jurisdiction (in this case, the United Kingdom) and how this can affect your playing options if you’re a resident.
Current legal status
At the time of writing, Bitcoin is currently unregulated in the United Kingdom. There have been attempts by Bitcoin users and businesses to push for regulation but it appears the Financial Conduct Authority (FCA), the relevant regulatory body in the UK, is favouring a hands-off approach and, at the moment, there is no obligation for Bitcoin businesses to register with the FCA or enforce any specific regulations.
Bitcoin is subject to tax, according to Her Majesty’s Revenue & Custom (HMRC), the financial institution in the UK responsible for taxation. HMRC defined Bitcoin as a “single-purchase face-value voucher” and, initially, taxation was in the form of Value Added Tax (VAT) at the moment of purchase of bitcoins. However, as the reality of Bitcoin means that it is not a single-purchase commodity, this directive by the HMRC has been withdrawn and it is understood that it is currently reconsidering its official position.
According to Dr Cathy Mulligan, a professor at the Imperial College of London and a cryptocurrency researcher: “Bitcoin in the UK is really treated as private money. If you tried to exchange Bitcoin for sterling, you don’t get charged VAT on the value of the Bitcoin but it is charged on, for example, the commission instead.”
What this means for Bitcoin gamblers in the UK
Online gambling is legal in the UK so if you are a Bitcoin fan and you want to use it for your online gambling, you are legally entitled to, as long as you are over 18 years of age. Online gambling falls under the regulation of the Gambling Commission in the UK so if you see a website that displays a Gambling Commission logo then you can be sure that it meets the criteria of the regulator and has successfully obtained its gambling license.
As there are countless online casinos which accept Bitcoin and these can be based almost anywhere in the world, it is important to remember that if you are playing one which does not have the UK Gambling Commission’s logo on it then it is not compliant with the UK’s regulations and, as such, you may not have any legal recourse within the UK if you are unfortunate enough to have any problems.