Crypto gambling regulations around the world

Cryptogambling has quickly become an increasingly popular form of entertainment. Millions of people around the world like to use digital currencies such as Bitcoin, Ethereum and Litecoin when placing bets. But while there is this trend towards the use of cryptocurrency, many governments are now turning their eyes to regulating this activity. This article takes a look at the global regulations that exist and how they affect players.

Why do authorities regulate cryptogambling?

Cryptocasino gambling remains a controversial activity with many governments placing strict restrictions on the industry. With cryptogaming, the problem is further complicated by its anonymous and highly decentralized nature.

As a result, many governments feel the need to protect citizens and maintain order in society by exercising greater control over cryptogambling. This is largely done through laws or regulations that dictate where players can bet, who they are allowed to give funds to, which specific share forms/tokens can be used for deposits with an operator etc.

Sometimes these rules have been applied harshly, leading to outright bans in certain countries. In others, attitudes towards cryptogambling have been more relaxed with regulations tending to focus more on consumer protection and transparency of bet results. Responsible gambling policies are often put in place to encourage players and ensure that the entertainment is enjoyed responsibly.

Global rules for gambling

The rules for crypto gambling vary widely around the world, and each government has its own approach. So it is important for players to be aware of the laws/restrictions that may apply in their region. Below we will take a look at some of the most important regulations by country.

• The United States. The United States is divided into several jurisdictions, each with their own laws regarding cryptogambling. Some states allow bets to be placed on provably fair games, while others have moved towards banning all types of online gambling and cryptocurrencies altogether. New Jersey, Nevada and Delaware all have laws in place that allow gambling activity within their respective borders.
• Great Britain. In the UK it is illegal to operate an unlicensed gaming site and all transactions must go through a licensed payment provider. The UK Gambling Commission also sets strict rules regarding fair play and routinely audits operators for compliance. The commission also offers guidance on responsible gambling and enforces a self-exclusion option for those who may be at risk of overindulging.
• Canada. Canada has taken a more relaxed approach to gambling with unlicensed online casinos, with the federal government leaving regulation to each individual province. Players in Canada have access to both licensed operators as well as unregulated ones, but it is important for them to always be aware of any restrictions that may exist depending on their specific location.
• Australia and New Zealand. These two countries have taken a stricter stance on cryptogambling, and both require operators to obtain local licenses. All games and payouts must also comply with the respective country’s laws in order for them to be approved/legalised.
• Japan. Japan has taken a hard line when it comes to gambling with crypto, in particular. In Japan, any form of crypto gambling is prohibited for both operators and players. The government has been clear about its stance, declaring any form of online gambling illegal regardless of where the activity is carried out.

As you can see, regulations around cryptogambling vary widely around the world. In some places it is freely and openly allowed, while in other places governments use harsh restrictions to limit its spread. But we expect that over the coming years more and more governments will continue to look at regulating this form of entertainment as it becomes increasingly popular.

Regulatory areas affecting players

When it comes to regulations that cross cryptogambling, there are several broad areas of law that specifically apply to online gamblers. Responsible gambling is of course the most crucial area and one that needs to be closely monitored. The authorities strive for a safe gambling industry and this includes measures such as player self-exclusion options, as well as deposit/withdrawal limits plus age restrictions.

Another important regulation concerns encryption protocols that all websites need to maintain secure platform access to users’ digital wallets (both players and operators). This ensures that funds are always kept safe away from potential theft or malicious activity by potential hackers. Finally, KYC requirements also matter as governments want transparency about who can engage in online gambling activities so they can properly track behavior when necessary.

Final thoughts

Crypto gambling is fast becoming an accepted form of entertainment around the world and as such governments are taking steps to properly regulate this industry. While there may be different laws/restrictions from jurisdiction to jurisdiction, the ultimate goal is to create a safe and fair environment for all players to participate.