The crypto gambling world has been rebellious until now, but regulation is becoming a stronger possibility.
The online gambling industry is constantly changing with new and exciting games, payment methods and verticals brought in for players to enjoy . Cryptocurrency is one of the big changing factors that has quickly been adapted into the world of online gambling.
Despite its benefits, crypto gambling is an unregulated gaming form that seems rather odd in an industry determined to increase regulatory safety.
A rise in popularity
Cryptocurrency has quickly established itself within the iGambling industry with more online casinos providing it as a form of payment. Even more so, you'll find crypto-only online casinos launching across the globe.
While some regions such as the UK are still keeping crypto gambling at bay, others such as the US are becoming more lenient towards it. Some areas such as Wyoming have already made it legal to place cryptocurrency wagers as long as they can later convert it to a cash-based currency. It is one of the more crypto-friendly states where they have even been researching the possibility of state taxes paid in the form of crypto .
It's not all rainbows and big wins as the UK Financial Conduct Authority and the U.S. Securities and Exchange Commission are still trying to understand the workings of this highly volatile market.
For the UK crypto is part of its remit but Treasury on the other hand has set an intention to legislate and bring certain crypto assets under promotion regulated later in the year.
The intention is to hold the relevant crypto-asset promotion at the same high standers as the rest of the financial services industry.
The dangers of crypto
One of the biggest concerns with crypto is the widespread fraud and money laundering currently happening. This is happening with crypto and other blockchain-based assets such as non-fungible tokens (NFTs). A prime example is OpenSea which is a booming NFT platform currently full of shady activity. The platform itself has said that there is over 80% of plagiarized works, fake collections, and spam .
While crypto is anonymous it is not 'dangerous' in that regard. The main reasoning is that while transactions are anonymous, tracking is possible even if not to a specific name or address. You can still track and flag Crypto users for suspect behaviour.
Crypto is still new and like with many things new there are possible dangers and kinks to iron out. Crypto has many benefits, especially for those who enjoy actively participating within the iGaming industry. For this, it seems the next logical step would be to regulate crypto gambling .
Regulations in jurisdictions that have legalised online gambling have become a primary focus. Especially with the concern being to provide a safe and secure betting experience for users. Despite the idea that cryptocurrency is new and 'foreign,' it is quickly being adopted and through regulation of crypto gambling, it can quickly become one of the safer gaming options available to users within the gaming industry.
Crypto becoming more acceptable
Apart from being more accessible to iGaming users, digital currencies are quickly becoming part of regular payment options, especially within the US. In the US there are a number of state officials that are so comfortable with crypto that they request salary payment via cryptocurrency. Eric Adams, the Mayor of New York has been paid in BTC.
Arizona State Senator, Wendy Rogers is currently in support of three bills that encourage crypto adoption and compliance . This includes allowing payment of taxes via cryptocurrency. When you take this into consideration, it doesn't seem impossible to imagine a regulation of the crypto gambling space.
The likeliness of crypto gaming regulation increasing
With the popularity of cryptocurrency use in the online casino industry, such as even creating entirely Bitcoin casinos , increasing the likeliness of regulation for it increases.
The big argument many have is that crypto is receiving bad press and feedback due to it being unregulated and being misunderstood.
If the process of using crypto is explained and simplified it is less likely to be vilified. People tend to shun what they don't understand. On top of that crypto is one of the easiest ways operators can process payments with the benefit of allowing players to remain anonymous.
Crypto trading is considered as another form of gambling and is now targeted by GamCare for the introduction of self-exclusion services . Their main goal is to implement new tools and strategies that protect the customers vulnerable to cryptocurrency trading harms. This only confirms the risen awareness of the crypto need for regulation and safety.
According to Tim Heath, an early Bitcoin adopter, and partner at Yolo investments, the lifetime value of crypto players is 3 to 5 times that of a fiat player . According to Heath, the biggest misunderstanding is that fiat players believe crypto will disappear as quickly as it appeared. With this in mind, Heath encourages operators to understand the crypto community and provide a space to bet with the most convenient digital asset.
The industry is changing, and cryptocurrency is quickly finding itself a more permanent role within both traditional and crypto casinos. With that in mind, regulatory bodies will have to start looking into adding regulatory requirements that will benefit and protect users at crypto casinos. The priority remains to put the customer first , whether they choose to fund their gameplay using crypto or fiat currency.
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by 
February 21, 2022
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