Is Bitcoin legal to play in online casinos?
As the first cryptocurrency in history, Bitcoin is growing in popularity every day. One of the biggest beneficiaries of the rise of cryptocurrencies is the online gambling market, where more and more operators are accepting alternative currencies such as Bitcoin as a form of payment to access a variety of gambling options, from sports and esports betting to casino games.
Bitcoin online casinos worldwide
The availability of Bitcoin gambling varies from country to country, similar to the availability of the internet gambling industry. You have to navigate a wide range of laws when you consider the current unclear state of Bitcoin in these countries (not to mention its future).
In Europe – in Latvia
It’s no surprise that Bitcoin is accepted in virtually every European country, given that this is where cryptocurrencies first gained notoriety.
Countries such as Germany, Denmark, Sweden and Norway allow their citizens to play online gambling on sites that have the necessary licenses. Some of these countries also allow Bitcoin gambling if it takes place through an authorized EU casino or sportsbook.
When it comes to the development of the cryptocurrency gambling industry, Malta is considered an innovative leader. The small island nation was the first to pass crypto-friendly laws, such as the Innovative Technology Arrangement & Services Act 2018, which established the Virtual Financial Assets Framework (VFAF) and the Malta Digital Innovation Authority (MDIA).
in Great Britain
The United Kingdom Gambling Commission (UKGC), one of the world’s most renowned gambling regulatory bodies for its commitment to player safety, oversees gambling in the four countries that make up the United Kingdom. Licensees must follow strict guidelines to conduct their business, including verifying the identity of players and finding out where players’ money comes from if they exceed a certain level.
When it comes to Bitcoin, the UK government wants to become a cryptocurrency business hub. Many government agencies already unofficially recognize Bitcoin as a form of money, and buying it there is completely legal.
Bitcoin online casino legality key facts
As you can see, there is a slight polarization in the global environment regarding the legality of Bitcoin gambling: in certain countries, Bitcoin is allowed, but online gambling is not; in other countries Bitcoin is banned while online gambling is allowed; and still others do not allow Bitcoin or online gambling. So how does one navigate such unstable ground?
So that you can at least get a better understanding of the current situation and what’s to come in the near future as the bitcoin gaming business evolves, we’ve boiled down the scenario below to a few important facts.
There are no specific laws
In general, there are currently no clear rules governing Bitcoin gaming. This indicates that neither laws nor casino licenses specifically prohibit this practice, nor are there any that expressly permit it. As a result, Bitcoin gambling now exists in a gray area, at least until lawmakers can determine which course to follow.
Changing situation every day
What can we predict when these lawmakers have had time to consider the best direction for any legislation? It is reasonable to assume that the situation is changing based on the current situation in some countries and the growing trust in both Bitcoin as a cryptocurrency and blockchain technology in general.
Legislation governing Internet gambling in fiat currencies is absent in some stubborn countries, providing a loophole for would-be Bitcoin players in those countries.
However, more nations are beginning to see the future potential of bitcoin casinos and are gradually beginning to include cryptocurrencies in the mix, which augurs well for a favorable climate for bitcoin gambling in the near future.
Identity checks are still required during the registration process
Although Bitcoin offers potential players some significant benefits, such as anonymity and faster transaction processing times, they may still be required to provide proof of identity and information about the source of funds under existing Anti-Money Laundering and Proficiency Regulations. Your customer protocols on established online gambling sites.
Licensing process
Several reputable licensing agencies, particularly in Curaçao, have begun issuing licenses to operators that accept cryptocurrency payments, indicating that they are also regulating the cryptocurrency side of these sites’ operations. It won’t be long before other industry licensing agencies follow suit.