What are the Impacts of Cryptocurrency in Online Gambling?
The launch of cryptocurrency has changed the gambling world. It has allowed more people to be able to bet online without having to worry about what appears on their bank statements. Sometimes it can be difficult for people to get a mortgage or something similar when lots of gambling transactions appear on their bank statements. Cryptocurrency is a third party money handling website which can help people get around that.
A huge positive of cryptocurrency is that it allows instant transactions for deposits and withdrawals. It also helps to provide security and privacy. Cryptocurrency is decentralised which means that they are not governed by any bank, and only one person has any jurisdiction over any transaction. This also means that your details are anonymous and not visible anywhere to anyone other than yourself. With such privacy, your accounts are secure in a world where hacking is a norm.
Is Cryptocurrency Legal?
The UK Gambling Commission (UKGC) said: “If you want to accept digital currency as a means of payment (either directly or through a payment processor which accepts digital currencies) you must satisfy yourself and us that you can meet your obligations in relation to anti-money laundering and that you are acting in a socially responsible way.”
This essentially means that in order to be able to accept Bitcoin and other kinds of cryptocurrency as a means of payment then the online casino must meet the regulations required by the UKGC. Currently, no casino within the UK has passed these regulations. This means that if a casino in the UK persists with cryptocurrency then they will lose their license and therefore not be allowed to open. There are some ways around this though, including the partnership between Skrill and Bitcoin. But, generally, you can’t play at a licenced casino with Bitcoin or any other cryptocurrency.
Will This Change?
Previously, the UKGC ruled out the use of cryptocurrency, but now it talks of “you must satisfy yourself and us”. That suggests that there is a door open for cryptocurrency casino licences in the future. Indeed, there has been talk of the MGA (based in Malta) exploring the viability of the situation. It could well be very likely that at some point in the future we do see cryptocurrency become legal in the UK.
It will be key, though, that when this does happen that the casinos are very tight on any possible fraud that occurs through cryptocurrency. It is more likely that criminals will try to glitch the system when using cryptocurrency but it should be simple enough to block if the casino is thorough enough with their security measures.