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How Does Crypto Online Betting Work And What’s Its Legal Status?

How Does Crypto Online Betting Work And What’s Its Legal Status?

Published by Programme B

Crypto gambling and betting is one of the most popular options among casino enthusiasts and  as time goes by more and more people get involved. Since the inception of cryptocurrency, some industries started to embrace digital currencies immediately. One of the main sectors among others was online gambling.

There are many reasons behind the popularity of crypto betting. The first reason is that it is secure and transparent, thanks to blockchain. In addition to that, there are many countries where online gambling is prohibited, however, with the use of digital coins, customers can hide their identity and gamble anonymously. Nevertheless, it should be mentioned that even though the crypto market is a decentralized market some countries have specific regulations for it. This means that in some states it is prohibited to crypto gamble. As a result, when a player decides to start gambling, he or she should take into account the strict regulations that may be set in a certain country.

Crypto Gambling Around The World

The European Union is at the forefront of the cryptocurrency trend since it was the first one to legalize it. Nevertheless, at the time of this writing, no comprehensive regulation governs crypto-related operations. When it comes to the regulation of cryptocurrency, Malta is at the top of the list. Malta was the first country to enact legislation on the topics of blockchain, MDIA, ITAS, and VFA. 

Considering that the Unlawful Internet Gambling Enforcement Act (UIGEA) prohibits online gambling in the United States, authorities can take significant action against crypto gambling websites and gamers who bet with Bitcoin or other cryptos. 

There are nations where cryptocurrencies are illegal, yet crypto exchanges are perfectly legal in those same countries. This strategy has worked well in South Korea.  Even though the UK recognizes Bitcoin as a medium of exchange, there are several prohibitions on the use of cryptocurrency for gambling. But before applying to offer crypto gaming, casinos need to make sure they can follow the rules about where the money comes from. If they can’t, the application could be denied.

Although public perceptions of cryptocurrency gambling are shifting swiftly, the issue of whether it is legal in certain nations remains unresolved. There are no rules governing crypto gaming in general. It is neither permitted nor outlawed by the government. There has been a dramatic shift in the attitude of governments toward crypto, with more and more nations embracing the technology and considering how to regulate it. However, the majority of countries still do not consider Bitcoin to be money at all. 

Effects Of Regulation On Crypto Betting

When it comes to regulating crypto betting many things are worth considering. Firstly, because of the crypto market’s global and decentralized characteristics, it’s impossible to regulate it with 100%. Nevertheless many countries nowadays try to find ways to regulate crypto gambling or even prohibit it because of the related risks. 

First and foremost, when it comes to crypto-betting gamblers should always consider that they might become a “victim” of the market’s volatility. One day, as happened in the case of TerraUSD, your betting crypto may lose its value. With the use of the regulation, customers may be protected from this practice. Regulation may involve prohibiting crypto betting overall or making it possible to bet with comparatively stable cryptos, like BTC and Ethereum. 

As time goes on and more and more people want to engage in crypto gambling, the number of service providers increas respectively. Unfortunately, fake bookmakers and online casinos appeared in the market as well, which try to steal your money and personal information. Regulation helps customers to prevent such kinds of cases. Regulatory can manage businesses and find whether or not there are some chances for companies to be fraudsters. So, this is one of the best advantages of crypto betting regulation. As many novice gamblers don’t have enough information, they can be easily cheated. Regulation will prevent and overcome such occasions.

It should also be mentioned that there are additional difficulties in identifying and confirming clients who use utility coins for gambling because of the enhanced anonymity afforded by cryptocurrencies. As the transactions are anonymous no one can find the real thief of personal information or funds.

Instances when the value of a currency or a token fluctuates widely over short periods (e.g. currency fluctuations) raise concerns about AML/social responsibility triggers. Regulations can overcome the problem of money laundering and can have a positive impact on social and economic justice. 

But, regulations can have some disadvantages as well. Because of the laws, the companies in the crypto gambling industries are limited to creating innovations that may be beneficial to the customers. However, to sum up, regulations can have more advantages than disadvantages in terms of crypto betting and the online gambling industry, considering that they aim to protect customers from becoming victims of scammers and fraudsters. 

Photo by Aedrian x Pexels