The legality of Bitcoin in gambling
Bitcoin has emerged out to be one of the most popular transactional methods that have been implied across various industries. The factors which make it highly popular include accessibility, ease of use, safety and privacy. Thus, in industries such as casino gaming, Bitcoin gambling is slowly being implemented as well.
However, the legislature for Bitcoin gambling is not the same across different countries. Although there is an increase in competition in the market when it comes to offering Bitcoin wallets and related services, there has also been a lot of safety issues noticed as well. So, what are the factors that ensure the possibility of enduring Bitcoin gambling in a country?
The two determinants that ensure Bitcoin gambling opportunity
1. Legality of Bitcoin transactions in the country
In all countries, it is essential to find the legality of accepting Bitcoin as an acceptable method of transaction. This should be the primary motive to determine whether it can be applied in the casino gaming industry. Many countries have strict regulations or perhaps no legislations that approve of Bitcoin gambling transactions taking place in the country. Thus, online gambling using Bitcoins becomes even more restricted in such countries
2. Legality of online gambling in countries
Similar to the previous mention, it is also important to analyse whether or not online or internet gambling is allowed in a country or not. Countries such as China have strict rules when it comes to gambling (almost negligent). Thus, in such countries, the use of Bitcoins for online gambling becomes moot because of the inexistence of such practices
Why are regulations so strict for Bitcoin gambling?
The regulations are really strict for Bitcoin Gambling. Bitcoin and cryptocurrency were laid on the foundation of anonymity. Both the sender as well as the recipient remain untracked in the network of transactions that takes place in a Blockchain. Thus, it becomes incredibly difficult for governmental organisations to keep a track on illegal transactions that might take place through this network. The sole intention of purchasing or carrying out an illegal service can remain as the single most hurdle for the government to overcome the problem.
Effective implementation of taxation policies might be affected and disrupted as well. People can avoid paying taxes by investing the surplus in availing online gambling services through Bitcoin transactions. Thus, such practices might go unnoticed by government organisations.
What could governmental organisations do for allowing Bitcoins in gambling?
The first step would be to analyse the advantages of implementing Bitcoin in the regular industries as well. Once the government recognises the massive impact that Bitcoin can have on such industries, they might consider allowing Bitcoin to be used in the online gambling industry as well.
Governmental legislatures and regulations should be imposed on online gambling that allows for Bitcoin transactions. The first step once taken, can allow them to reconsider what kind of policies will allow a mutual benefit for all stakeholders.
Some policy impositions can include a well-organised and implemented practice of licensing gambling services and providers. Casinos need to be licensed in order to maintain the overall quality in providing online gambling services. Licensing also allows casinos to come into the radar of a dedicated ruling body that has been assigned to the task of accrediting and legalising gambling practices in the country.
The mix of accreditations and licensing, plus the availability of Bitcoin payments and withdrawals gives many players the interest and opportunity to invest in the casinos. Thus, it can directly or indirectly be of benefit for the nation’s economy as well.
Author : Heather Heaton
Published Date : 22/07/2019
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