The bitcoin is a new term and as such, it is still vaguely regulated throughout the world which means that there are a lot of speculations. Online gambling websites have started to understand whether bitcoin may be an acceptable form of currency betting-wise. These operators’ desires are to be legal which is why bitcoin comes as a big decision because most operators can’t figure out is bitcoin entirely legal, does the casino need a bitcoin license and may users from all around the world use it?
The Basic Regulations
Unfortunately, a single answer to these questions doesn’t exist but some facts are still present. Firstly, there are no international laws that regulate bitcoins’ use in gambling and therefore, bitcoin is neither forbidden nor permitted. Throughout the world, a lot of attention has been recently given to bitcoin technology and the cryptocurrency has been mostly positively accepted by numerous governments that are already implementing bitcoin and blockchain-based projects or plan to.
Still, Bitcoin remains as a phantom currency for the most of these governments and if it isn’t fiat currency, the regulations for these traditional currencies are not valid to bitcoin because most governments don’t recognize it as a regular currency. In some countries where gambling is legal, the government no way responds to bitcoin (for example bitcoin gambling Australia is fully legal).
Since bitcoin transfers are done with Tor and similar techniques that provide anonymity, it becomes truly hard for governments to track bitcoins to gamblers.
In some places, bitcoin use in the gambling industry has been regulated so online casinos need to get the additional bitcoin license. For example, United Kingdom regulates bitcoin use in gambling. The UK Government is one of the most strictly regulated gambling markets in the world.
Bitcoin is based on blockchain technology and when used in gambling, the technology doesn’t involve third-party services in the payment process which results in instant and secure transfers. There is no central regulating authority which means that a gambling license is really not a necessity since it is a decentralized safe system. However, a lot of people feel distrust if there is no license and therefore, it could be worth to license casinos in order so that the players may feel safer.
Regulations surrounding the use of bitcoin are certainly going to develop in the recent future and it is always advisable to prepare for that and start providing the bitcoin option earlier. However, in order for operators to ensure the legality of their actions, they should apply local laws applied to traditional currencies to bitcoin at the moment.