You have probably heard the wonderful story about a guy who spent 10,000 bitcoins on pizza in 2010. Then it was only 25 bucks! Currently, one could buy a beautiful island off the coast of Florida for this amount of BTC, then use the remaining funds to build several high-end restaurants. Hopefully, that pizza was really tasty.
Bitcoin has become one of the most popular decentralized currencies in the iGaming industry today. However, the question of the legality of gambling with cryptocurrency in many countries remains open.
Operators who choose Bitcoin or any other cryptocurrency as their currency for their online casinos are often confused by conflicting facts and controversial decisions by the authorities.
Doing business legally is an understandable desire of all crypto operators. That is why the moment of licensing this type of casino is still actively discussed in the market.
It is difficult to single out one global strategy, each region has its own trends in relation to bitcoin. This article is our mini-research aimed at determining the stringency of crypto gambling regulation. Enjoy reading!
Crypto gambling in the world
The European Union, a pioneer in the legalization of cryptocurrency, is one of the most advanced regions in terms of cryptocurrency regulation. Malta is the industry leader when it comes to cryptocurrency regulation. MDIA, ITAS, and VFA, as well as blockchain laws, first appeared in Malta.
The United States does not have laws prohibiting Bitcoin gambling. However, many regions continue to disagree on this issue. The Illegal Internet Gambling Act prohibits “knowingly accepting payments from another person engaging in a bet or wager that is related to Internet use illegal under federal or state law,” so all states must take this into account.
There are countries where cryptocurrencies are prohibited, but cryptocurrency exchanges are legal. South Korea is an example of a country that successfully implements such a scheme.
Many governments are making good headway in the crypto sphere. For example, in August 2021, El Salvador became the first country to accept Bitcoin as a legal currency.
The UK recognizes bitcoin but imposes certain restrictions on gambling using cryptocurrency. Casinos that want to offer crypto gambling to their players must make sure that they can prove the legitimacy of the source of the funds before applying to the UKGC (UK gambling regulator). The process of processing the application may seem tedious, but it is necessary to ensure the safety of the players.
Basic facts about the legality of bitcoin gambling
Is crypto gambling really legal? Is there uniform legislation to regulate this type of gambling? What does it take to open a legal crypto casino? Sometimes there are more questions than answers. Follow BTC Manager to stay updated on cryptocurrency news.
Opinion about crypto gambling is changing rapidly, the legality of gambling with bitcoins is still limited in many countries. To date, there are no definite answers to the questions above. However, here are some key points that need to be understood:
1) Generally, there are no specific laws governing bitcoin gambling. This is not officially permitted or prohibited.
2) The attitude of various authorities towards bitcoin is changing quite quickly, more and more countries are accepting bitcoin positively and discussing the regulation of cryptocurrencies and blockchain-based services.
However, most governments today still do not view cryptocurrency as a real currency. If this is not “real” money, then no rules regarding traditional online casinos should apply to crypto gambling.
3) Notwithstanding the above, in countries where gambling is strictly prohibited, such as the United States, authorities may still take strict action against online casinos or gamblers who place bets with Bitcoin.
4) Bitcoin gambling sites offer players complete anonymity. Bitcoin payments usually do not require verification. However, when it comes to amounts of USD 2000 or EUR, reliable operators must ask for data for the minimum identification of the player. This procedure is necessary to ensure that the AML and CFT requirements have not been violated.
5) A few reputable gambling jurisdictions have already awarded licenses to casinos that accept bitcoins (in particular, Curacao). This means that they take responsibility for overseeing the operation of cryptocurrency websites. As long as the online casino complies with the rules and regulations of the chosen jurisdiction, it operates legally.