Since the appearance of the first virtual currency, quite a lot of time has passed: it has long lost the status of “one and only”. Today, many forks are prosperous, and even in the bitcoin network itself many applications and services have appeared. The popularity of electronic money was the impulse for the formation of a completely new economy, which competes with traditional monetary systems.
Bitcoin transactions have opened up new prospects for gambling establishments. Cryptocurrency allowed gamblers to play anonymously and instantly operate funds. Online projects that support bitcoins are gaining more and more popularity every day. According to statistics, by 2022, every second gaming site will accept payments in virtual money.
Given the situation, many operators are interested in the legality of bitcoin casinos and the need to license such a business.
The Legality of Bitcoin Gambling
The first thing that an investor should remember is that in the modern world, there are no single legislative acts that directly prohibit or somehow regulate the gambling industry that works on cryptocurrency.
The first thing that an investor should remember is that in the modern world, there are no single legislative acts that directly prohibit or somehow regulate the gambling industry that works on cryptocurrency.
The legality of a bitcoin casino should be determined on the basis of the following factors:
- The legality of bitcoin gambling within the territory of a particular country.
- The ability to organise casinos in the selected country
| Countries within the territory of which gambling is restricted or prohibited | |
| Country | Format of the prohibition |
| Australia | It is prohibited to offer locals to play casino games for money |
| China | The activity of land-based and virtual gambling locations is considered illegal |
| India | There are no rules for controlling the gambling industry, and the online sphere is practically not developed |
| Israel | It is forbidden to organize any kinds of gambling entertainment for the locals |
| Turkey | Online business is completely banned |
| Malaysia | It is prohibited to offer locals to play casino games |
| US | The legislation in the country is individual for each state |
As for the bitcoin currency itself, virtual money is allowed in all countries on the territory of which the gambling market is prosperous (more than a hundred states). The use of electronic currency is strictly prohibited only in Pakistan, Bolivia, Macedonia, Bangladesh, Algeria, Vietnam, and Saudi Arabia.
Licensing of Cryptocurrency Casinos
The aim of licensing of any form of entrepreneurial activity is to process transactions with the involvement of banking systems. Since the bank does not participate as an intermediary in bitcoin casinos, it is not necessary to obtain licenses for such startups. However, there are a few “buts”:
- Firstly, the legality of a bitcoin casino does not raise questions only if the system uses only virtual currency (any other banknotes cannot be used to place bets and withdraw winnings). In fact, such a casino is not controlled by any of the existing banking institutions and other specialised authorities. Services that use bitcoins as an additional method of payment are not included in this category and are subject to the standard licensing procedure.
- Secondly, the legality of bitcoin casinos is a demonstration of the status and reliability of the gambling establishment since the world’s leading providers of the game content cooperate only with the officially licensed companies.
The legalisation of bitcoin casinos can be carried out in any of the existing jurisdictions that issue gambling licenses. Among the most respected ones, there are:
- the Isle Of Man;
- Costa Rica;
- Malta;
- Antigua and Barbuda;
- Kahnawake;
- Curacao.
The Operation Principle of the Platform With Cryptocurrency
The legality of a bitcoin casino is defined by the term “the provably fair casino”. In this case, it is a hash function. This is a special algorithm that creates encrypted values — “keys” for clients and the server. Any operation is confirmed only after the player sends the code and combines it with the value assigned to the server. The use of such a scheme eliminates the possibility of fraud.
Conclusion
Taking into account the standardised norms that regulate cryptocurrency business projects, the legalisation of bitcoin casinos remains on the conscience of operators. In fact, this kind of activity is not controlled by any of the existing states or authorities.
On the other hand, the possession of a license provides access to the extensive list of partners and investors, the opportunity to cooperate with the world’s leading software vendors, and loyalty of the end-user.
For more detailed information on the nuances of acquisition of foreign licenses, you can always contact specialists of Casino Market. We are always aware of the latest events and new trends and are ready to offer relevant solutions for projects of any format.
Partnership with Casino Market is a good way to enter the international arena and avoid all possible pitfalls. Start your own gambling startup now! Contact us:
- by e-mail: manager@casino-market.com;
- on Skype: support.casinosupermarket;
- via the feedback form
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