Is Market Regulation of Online Gambling the Death of Crypto Casinos?
The launch of crypto casinos has taken the online gambling industry by storm. All thanks to several advantages that they offer. From low transaction fees to anonymity – crypto casinos are an answer to all the limitations and struggles associated with the online gambling industry.
This is the reason that a large number of BTC casinos popped up over the last 10 years and started offering their services to global gamblers. Although a large number of gamblers, particularly from the areas where online gambling is not legal, found relief in crypto casinos, they struggle to gain mainstream acceptance and recognition.
It is expected that crypto casinos will not get the required acceptance from other relevant bodies like national gambling regulators. Further, the predictions that the online gambling industry is in the process of getting legalized are also making things worse for crypto casinos. This is because chances are high that national regulators might decide to close down crypto casinos operating in their jurisdiction.
The impact of this fall out could be disastrous, and could even impact the entire gambling industry.
Crypto Casinos and the UK Gambling Regulation
As far as the downfall of online crypto casinos is concerned, the UK gambling market surely deserves a mention. The market is the perfect depiction of the lack of integration between cryptocurrency and gambling.
Although the island witnessed the emergence of a large number of online betting and gambling websites, the majority of these struggle to obtain the required licenses. Only a handful of these businesses possess a Malta Gaming Authority or United Kingdom Gambling Commission license, and out of the ones which have these licenses, only a few accept cryptocurrencies.
Why All This Chaos?
One of the major reasons behind this commotion is the status associated with cryptocurrencies. Talking about the UK, the registration requirements for crypto casinos are hard to meet. This is because cryptocurrencies are not recognized as legal tender in the country.
These digital currencies are covered for taxation, the government taxes crypto profits, however, other activities related to crypto are considered to be invalid. What this means is that although a grocer shape in the UK can accept payment in cryptocurrencies, but a sports and gambling platform cannot accept crypto stakes and bets.
This is the root cause of the problem. Crypto casinos have the required infrastructure, and even the customers to operate in any market across the world. What they lack is the required permission, acceptance, and recognition from the countries they are located in.
Thus, it will not be wrong to conclude that this entire concept of crypto casinos will be washed out quickly if proper timely measures are not taken.
A Possible Solution
This could very well mean that crypto casinos are on the verge of getting vanished and could shut down any moment as soon as local authorities move to look into their direction.
The possible way out here is to work with regulatory bodies and attain their gambling licenses through proper means and by meeting their regulatory demands.
That said, cryptocurrency payment and deposit options are more diverse, advanced, transparent, and convenient when compared to traditional baking services. If crypto casinos play their cards right, it is likely that their user base will continue to grow like recent growth in BTC casino.
For now, all crypto casinos need to do is follow a proper regulatory framework consisting of anti-money laundering mechanisms, know-your-customer rules and the like, and we are hopeful, they will surely win the battle and emerge stronger.
What are your views on this? Let us know in the comments below.