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Blockchain is rapidly gaining momentum and is already changing the rules of the game in various industries. Despite the fact that it still faces many legal challenges, the technology is confidently making its way to full integration. It is especially interesting to see how cryptocurrencies are entering the iGaming world and revolutionizing financial transactions in online casinos.
In this article, we will dive into when the leading market players will be able to fully switch to blockchain and what it will mean for the future of gambling. It is time to find out when crypto will become a standard in casinos!
Gambling remains illegal in many countries, and where casinos are allowed, businesses face high taxes and strict regulations. These restrictions are related to a number of factors: reputational risks, legal uncertainties, constant changes in regulation, and technical difficulties faced by the industry. These aspects make gambling a challenging area for operators seeking to work within the law.
In India, services such as Paytm can block transactions if it turns out that the recipient is associated with an online casino. This is a typical practice for countries with a large number of jurisdictions and a complex legal system. However, refusals to process payments happen even in regions where gambling is legalized. These factors encourage casinos to make more active use of cryptocurrencies for payments.
With the advent of bitcoin and other well-known digital assets, a new stage in the financial sector has begun. Without delving into the details of blockchain functioning, let us emphasize the key point: cryptocurrencies have eliminated international borders. You can transfer money from anywhere in the world with virtually no additional fees, as long as the recipient has access to the Internet and a crypto wallet.
The main advantage of digital currencies is the absence of delays in transactions, instant withdrawal of funds, and minimal restrictions by region.
The cryptocurrency sector is constantly evolving and adapting to new requirements. Government agencies are seeking to regulate cryptocurrencies by assigning them the status of digital assets or money, introducing taxation, and adjusting legislation. Nevertheless, gambling operators continue to actively use cryptocurrencies, despite the fact that most countries have not yet established clear rules for their use in online casinos.
Some gambling jurisdictions, such as Curacao, issue licenses for cryptocurrency casinos. Formally, such jurisdictions are responsible for the security of financial transactions on websites, and operators are obliged to comply with measures aimed at preventing money laundering, terrorist financing, and customer verification (AML, CFT, KYC). However, scandals related to illegal copies of popular casinos that accept cryptocurrencies often occur in this area. This indicates the immaturity of the market, where problems still occur.
The main problem of cryptocurrency transactions in gambling is related to the uncertainty of the legal status of digital assets themselves. Many countries do not have legislative norms regulating cryptocurrencies. Governments avoid legalizing blockchain technologies because they cannot fully control them, but they are not in a hurry to impose bans either. The European Union is moving forward in the process of integrating cryptocurrencies into its financial system, although the final position on this issue has not yet been formed, as in most other countries. The exception is El Salvador, where bitcoin was recognized as a legal tender on the initiative of the president.
Regulators around the world are concerned about the difficulty of tracking cryptocurrency transactions. But how to manage conditional cold wallets that operate independently of exchanges is a question that has not yet been clearly answered.
There are many intermediaries on the market that provide reliable payment solutions. Their services are already integrated into hundreds of online casinos. For the platforms themselves, it is beneficial to accept cryptocurrencies as they expand transaction opportunities.
Cryptocurrency regulation goes hand in hand with the gambling control process. The legal status of cryptocurrency payments in iGaming has not yet been fully defined, and there is no clear framework for their legality. However, digital assets will gain popularity in two types of countries:
Like the iGaming industry, cryptocurrencies continue to move towards full legalization, demonstrating positive long-term prospects. By combining, these two areas will open up new opportunities for the markets and create mutual demand.