Desiring to operate their business legally, they try to find out if offering gambling services for Bitcoin is legal, whether a Bitcoin casino needs to be licensed. Considering how rapidly the situation changes, it's hard to identify a main global strategy. Each region has its own trends in relation to Bitcoin. This article is our research to determine how strict Bitcoin gambling regulation is. Join us and deepen your knowledge!
Bitcoin Gambling Worldwide
As a pioneer of legalising cryptocurrency, the European Union is at the forefront of the cryptocurrency movement. Even so, no comprehensive regulation is in place to regulate crypto-related activities at the time of writing.
When it comes to crypto regulation, Malta is the leader. MDIA, ITAS, and VFA, as well as blockchain laws, were all passed in Malta first. Some leaders consider it the most iconic law system used right now.
In the United States, for example, all online gambling is prohibited by the Unlawful Internet Gambling Enforcement Act, which means the authorities may still take strong measures against Bitcoin gambling websites and gamblers who make wagers with Bitcoin or other cryptos. It forbids "knowingly accepting payments in connection with the participation of another person in a bet or wager that involves the use of the Internet and that is unlawful under any federal or state law", so all states must consider it.
There are countries where cryptocurrencies are prohibited, but crypto exchanges are quite okay. South Korea is one example of where this scheme holds up. Some governments are confidently on the way towards working with cryptocurrencies. For example, El Salvador became the first country to accept Bitcoin as a legal currency in August 2021.
Is Bitcoin Gambling Legal?| SOFTSWISSKey Facts On Bitcoin Gambling Legality
Is crypto gambling legal? What laws are in place to regulate crypto activity? What does it take to open a 100% legit crypto casino? Sometimes there are more questions than answers.
The opinion on cryptocurrency gambling is rapidly changing, the legality of Bitcoin gambling is still hung up in many countries. As of today, there are no single, clear-cut answers to the questions above. However, here are some useful key points that need to be understood:
1) In general there are no specific laws regulating Bitcoin gambling. It is neither officially allowed nor prohibited.
Is Bitcoin Gambling Legal?| SOFTSWISSHowever, most governments today are still not referring to Bitcoin as a real currency. If it is not a ‘real’ currency, any regulations around traditional (fiat) currency in online casinos and sports betting sites should not be applied to Bitcoin gambling websites.
3) Despite the above, in countries where gambling is strictly prohibited, like the United States, the authorities may still take strong measures against Bitcoin gambling websites and/or gamblers who make wagers with Bitcoin, or any other cryptocurrency for that matter.
4) Bitcoin gaming websites offer the benefit of increased anonymity to players. Although, most trustworthy casinos will still require some form of identification as part of AML and CFT policies.
5) A few international gambling jurisdictions already issue licences to casinos accepting Bitcoin (notably, Curacao), which means they accept the responsibility of controlling cryptocurrency operations on gambling websites. As long as the online casino or sports betting website follows the rules and regulations of the chosen jurisdiction, it operates within a legal framework.