Wednesday, April 8, 2020

Will crypto gambling regulations decease crypto casinos?

The Takeaway:

Cryptocurrencies are no exception in terms of the gambling industry's unquenchable thirst. However, the regulators seem to leave no tables unturned to drop the use of crypto. Virtual currencies struggle to attain legality, and their betting on crypto gambling platforms is another topic of concern for the authorities. In this article, we have covered the strict regulations imposed by several nations on the online gambling of digital coins that can possibly lead to a comedown of the crypto industry.

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Even after a decade of existence, cryptocurrencies’ lives continue to travel a path of hurdles. The coins fight bitterly with the regulations, misconceptions, to get the deserved recognition in the public eyes. Similarly, the various platforms established in their names face rough times to climb the ladder of success; the crypto gambling websites being one of them. 

Over the era of digital coins, a substantial number of crypto gambling providers have come into play. Still, like the cryptocurrency themselves, the online casinos struggle to find a way into mainstream acceptance and appreciation. The online gaming industry is a widespread zone, but when it comes to the usefulness of virtual currencies, the platforms are blocked by strict regulations.

 

Japan determined to regulate crypto gambling

Japan is one highly technological nation. However, coming to the gambling industry, the Japanese government leaves no ties loose. The Japanese government is strong-minded to retain a firm grasp over proper means of gambling within its borders. The country’s rigid rules against crypto betting have proved to be a major barricade for gambling platforms. In March of this year, Tron declared the prohibition of all gambling DApps in Japan to fall in compliance with the nation’s regulations. 

The country’s House of Representatives amended two cryptocurrency-related laws on May 31, the Payment Services Act and the Financial Instruments and Exchange Act to improve the cryptocurrency services but ignored to imply any ease on crypto gambling regulations. Despite being supportive of the digital coins, cryptocurrency gambling continues to light as a hot topic in Japan

 

The US regulations apprehend Bitcoin gambling platforms 

Gambling has been an intricate concern for US citizens. The legal issue of online gambling is quite a mess in the country. Although there are no federal records disallowing gambling on the internet, the laws do regulate how people can adopt monetary transactions with gambling networks. The situation differs from state to state. The bitcoin gambling platforms seem to circumvent the legislation by keeping the funds in their crypto wallet. Furthermore, the Illegal Gambling Business Act also prohibits bitcoin gambling websites. Under the regulations of the IRS, if any online gaming business gains at least $2,000 in crypto in a single day, it may fall under the act of unlawful betting play. 

 

Europe disdain crypto gambling

Europe existed as a significant contributor to the crypto gaming networks, but the continent did not sustain the positive aspect. In 2017, the Netherlands, Czech Republic, and Poland tightened their restrictions, making gambling a complicated operation within their borders. In Poland, the authorities hiked the taxation rates to 12%, forcing some major gambling platforms to leave the Polish market. In the Czech Republic, every game that randomly generated a winner was supposed to pay a 35% tax from the revenue earned. Besides this, a primary 19% was implied as the corporate tax.

 

Asia versus crypto

Other than this, China certainly holds a love-hate relationship with the cryptocurrencies. Gambling activities in the country are strictly prohibited as the authorities impose stringent rules and regulations. India apparently is on the way to completely ban crypto. 

 

Will regulations on crypto gambling bring a downfall in the industry?

Although online gaming involving cryptocurrencies offers a range of benefits, the authorities tend to weigh the threats more than the revolutions cryptocurrency can bring in the gaming industry. The regulations proceeding in complete unfavorable action for the crypto can bring an immense fallout and impact the broader ecosystem of the crypto world.

Where the authorities fail to accept the advantages of cryptocurrencies, do you think that the legalization of crypto casinos will ever come?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Ramon AnderSon
Ramon AnderSon
Ramon is a senior market research analyst who is very passionate about bitcoin. He has a degree in Applied Science from Assumption College, Worcester.

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