Cryptocurrency is becoming a popular payment method among bettors. As a result, regulators in Canada and the European Union are developing new frameworks in 2025 to regulate crypto gambling. So let’s take a look at some of these regulations and what they mean for the gambling industry. 

Cryptocurrency is becoming a normalised payment method, thanks to the benefits that come with using it. From faster transactions to enhanced security, it’s no wonder that so many users are switching to the digital currency. However, it’s also important to be aware of the risks that can come with using it too. This is why both Canada and the EU are stepping in to ensure a safe and positive experience for all players. 

The rise of crypto in sports betting 

The integration of cryptocurrencies like Bitcoin, Ethereum and stablecoins into online gambling platforms has completely changed the betting experience. Many sports betting and online casino enthusiasts are now enjoying the ability to place wagers with greater anonymity and lower transaction fees. The decentralised nature of cryptocurrency also facilitates cross-border betting without the need for currency conversion or banking intermediaries. 

However, this rapid adoption has also raised a number of concerns. This includes worries of fraud, money laundering and consumer protection. The regulatory environment in many jurisdictions has lagged behind. This has left gaps for exploitation by unethical operators. In response to this, both Canada and the EU have introduced a number of regulatory measures to govern the crypto gambling market responsibly. 

Canada’s provincial approach to crypto regulation 

Canada’s regulatory landscape for gambling is already complex, even before you throw cryptocurrency into the mix. Each province holds the authority to regulate gaming within its borders. This has led to different approaches to gambling and cryptocurrency. Crypto gambling remains largely unregulated, but there are some provinces that are starting to address it. 

Ontario and Alberta are both taking steps to modernise their gambling markets. This includes potential considerations for crypto gambling. However, other provinces like British Columbia, Quebec and the Atlantic provinces currently maintain traditional government-run platforms that do not accommodate cryptocurrencies. However, as the landscape continues to evolve, there will likely be a broader acceptance of crypto gambling across Canada. 

There have been federal developments that have also impacted crypto gambling in Canada. This includes the Fintrac Enforcement. May 2024, saw the Financial Transactions and Reports Analysis Centre of Canada impose a C$6 million penalty on Binance Holding Limited. This was because they failed to register as a money service business and failed to report large virtual currency transactions. 

Additionally, by December 31 2025, Canadian crypto businesses must implement the Travel Rule. This requires the sharing of sender and receiver information for crypto transactions exceeding CAD 1,000. This aligns Canada with Financial Action Task Force (FATF) recommendations. Both developments show Canada is on its way to recognising cryptocurrency.

The European Union’s Comprehensive MiCA Regulation 

Regulation in Canada is mostly provincial. Whereas the European Union has pursued more of a unified approach, a continent-wide strategy to govern crypto assets and related activities. The Markets in Crypto-Assets (MiCA) regulation, which came into effect at the end of 2024, represents the EU’s landmark framework addressing the crypto market, including crypto gambling. 

Licensing and authorisation 

Under MiCA, all crypto-asset service providers (CASPs) operating in the EU must obtain licenses from competent authorities. This applies to crypto gambling platforms as well. Licensing involves demonstrating adequate capital reserves, operational capability and risk management systems. 

This means that any operator facilitating crypto-based sports betting must undergo thorough scrutiny before legally operating in EU member states. This ensures the integrity of the market and protection for bettors. 

Enhanced consumer protection 

MiCA also has a number of consumer protection standards for crypto gambling platforms. These include: 

• Clear disclosure of risks related to crypto asset use.
• Segregation of client assets from company funds to prevent misuse.
• Transparent and auditable random number generation processes.
• Efficient complaint handling mechanisms.
• Availability of comprehensive whitepapers detailing any tokens involved. 

For those using crypto to bet on sports within the EU, these safeguards are helping to mitigate the risk of fraud, ensuring a fair and trustworthy betting environment. 

Anti-money laundering and operational resilience 

AML compliance is a core pillar of MiCA. This requires platforms to implement enhanced due diligence and transaction monitoring. These measures help to combat illicit activities like money laundering and terrorist financing. 

Moreover, MiCA mandates operational resilience, compelling platforms to maintain business continuity plans, conduct regular stress tests and adhere to the EU’s Digital Operational Resilience Act (DORA). These rules bolster cybersecurity and minimise disruptions, crucial for maintaining bettor confidence in crypto gambling services. 

The difference between Europe and Canada’s crypto gambling regulation 

Europe and Canada have distinct approaches to regulating crypto gambling. In Europe, the regulation tends to be more centralised within the European Union, with coordinated efforts among member countries to create clear, harmonised rules for crypto gambling. This includes licensing requirements and consumer protections. Many European countries actively allow and regulate crypto to bet on sports and other games. 

In contrast, Canada’s approach is decentralised, with each province responsible for its own gambling laws. This has resulted in some provinces like Ontario and Alberta beginning to modernise and potentially include crypto gambling, with others maintaining government-run platforms without crypto support. Additionally, Canada is focusing on federal regulations for crypto businesses like anti-money laundering rules, which indirectly impact crypto gambling. 

As cryptocurrency continues to grow in the gambling industry, both Canada and the European Union are taking important steps in 2025 to create regulations that balance innovation with player protection. The EU’s unified MiCA framework offers a comprehensive, continent-wide approach, ensuring that crypto gaming platforms are licensed, transparent and secure. Meanwhile, Canada’s decentralised provincial system is evolving, with key provinces like Ontario and Alberta beginning to embrace crypto gambling. This is supported by stronger federal oversight on anti-money laundering. Together, these efforts signal a growing recognition of the benefits and risks of using cryptocurrency for gambling. This comes with the aim to provide a safer and more trustworthy environment for bettors worldwide. As the regulatory landscape develops, players can expect clearer rules and greater confidence when engaging with crypto gambling platforms in both regions.