The Legality of Crypto Casinos in The West
The penetration of cryptocurrency into our everyday life is growing by the day, and gambling is not left out. The gambling market is increasingly growing in several countries of the world and thus the industry develops new ways to accommodate technological waves so as not to be left behind. One of the ways that it embraces getting on track with technological advancement is the introduction of cryptocurrency as the payment method on gambling platforms.
Even the best crypto casinos don’t just opt for cryptocurrency for payments, they have to ensure that it complies with the legal requirements of the countries they operate in.
Crypto Gambling
Although getting more popular these days, having a knowledge of what it is may be very important for those interested in crypto casinos. Crypto Gambling is simply a type of online gambling that uses a currency different from the fiat currency that serves as a legal tender in a country. The currency used for crypto gambling is known as cryptocurrency.
The benefits of crypto gambling can’t be overemphasized, from security to instant withdrawal, to decentralized payments. Crypto Casinos can be grouped into Off-chain gambling and on-chain gambling. An off-chain gambling casino makes use of a centralized service which makes it necessary for gamblers to register. This means they would employ third parties to help convert the received crypto into local currency. However, they are easily monitored and regulated. Crypto Casinos who use On-chain gambling on the other hand do not require any form of sign-ins from punters who use their platforms. On these types of websites, players are difficult to track.
What Determines The Legality of Crypto Casinos
Even the best crypto casinos can’t just get their operations into any country without as much checking for gambling regulations that exist in the country. Although in reality, there are no such things as crypto gambling regulations in any country. A crypto casino can be legal in a country that:
- Allows online gambling: Any country where its citizens freely gamble online beyond the casino rooms available in physical places can surely allow crypto gambling. This is because both are done online and are quite similar in operations.
- Use of Cryptocurrency: Any country that regulates the use of cryptocurrency as a means of payment won’t raise an eyebrow for the use of cryptocurrency on gambling platforms.
If your country ticks these two boxes, you are pretty much free to use crypto casinos. Some states in the United States do not allow every form of online gambling, this means that an attempt to use crypto casinos will get such players banned.
Most states and other Western countries have already regulated the use of crypto for payments, but there are still countries off the coast of The US that have banned or restricted cryptocurrencies.
This would mean that, aside from those two important elements earlier stated, there are no outright laws that prohibit crypto gambling or crypto casinos. Most gambling companies ensure to stay up to date with any regulation changes in these countries and how they will affect the operations of the casinos.
Regulations in The US
Let’s get a real focus on The United States as a country and its relationship with crypto casinos. It is important to note that The US didn’t regulate crypto casinos or gambling on a federal level like most of its laws.
The US government institution that oversees its financial regulations is FinCEN and it had previously issued guidance to several businesses that deal in Convertible Virtual Currency, otherwise known as cryptocurrencies. Other payments done with cryptocurrency that are not defined as gambling or casino are regulated as a BSA which means Bank Secrecy Act.
In the US, each state can go on to introduce its regulations that attend to matters of cryptocurrency and online gambling. Most states in The US choose to place a ban or some placed limits on the operations of gambling websites. Only states like Delaware, New Jersey, Connecticut, Michigan, West Virginia, Pennsylvania, and Nevada have openly allowed the operations of online casinos.
For states that support online gambling, the crypto casino should move to get a license before it commences operations. For casinos outside the US, they would need to get this license from the necessary regulatory body.
Regulations in The UK
The UK has a Gambling Act, however, it doesn’t contain anything on crypto gambling. The body responsible for gambling regulations in the country is UKGC which is The United Kingdom Gambling Commission. The institution had previously issued a paper to tell its position on the use of cryptocurrency on online gambling platforms. The paper says that the ability to convert anything into cash means it has real-world value.
The commission regulated the activities of the online casino by making it necessary for every attempt to change the payment structure that may have existed in the casino.
Gambling Regulations in Canada
The regulations of online gambling in Canada are done peculiarly. The regulations in Canada are harsh on domestic casinos. Canada is divided into provinces and this also means like in The US, each province conducts its online gambling as it finds suit.
Most provinces in Canada do not support online gambling but foreign websites can be used to freely gamble. Cryptocurrencies are embraced in Canada. Ontario is a province in Canada that allows online gambling and it is hoped that other provinces would do likewise. Every gambling service rendered must be within the provisions of CFT/AML.
Conclusion
Knowing stated regulations that exist in a country on crypto gambling can help getting into trouble that may be serious. This is because the legality of crypto gambling varies from country to country. Although cryptocurrency has grown popular over the years, its use in online casinos has not gotten to that same level.
Every punter must be aware of the gambling regulations that are provided in the country he or she is presently located in. And even during visits before logging on to that site, a peep at the country’s gambling rules is a safe thing to do.
Check begambleaware.org for healthy gambling tips.
