While most countries and international banks make a conscious effort to steer away from cryptocurrencies, on the user-level people are pretty much left to their own devices. You could pay for various services via Bitcoin’s network for example. Oh yes, that includes gambling. As you may know, however, many countries now recognize gambling as an invaluable source of revenue under the condition that it remains strictly regulated. This condition is where the clash of ideas takes place. You see, the blockchain technology is decentralized so that no one can rule over it or impose their will, laws or anything of the sort. Is this enough for countries like the United States or the United Kingdom though to give the rising cryptocurrency gaming industry the cold shoulder?

The Government and the Blockchain – Conflict of Interest

Before we really get started with this, we first must make one thing clear, namely why governments have a bone to pick with the blockchain technology in the first place. Above all, the network is impossible to regulate. That means transactions can’t be traced back or the initiator thereof – Identified, which would be a great idea in a perfect world, but the reality is the world we live in is far from perfect. So, you can see how everyone and anyone can send and receive payments with whatever intent they want flouting the law with impunity. In other words cryptocurrencies can be used by criminals to cause harm. By and large, these are the reasons why this means of payment is still a grey area so far as legalization is concerned. As of now, the technology brings too much to the table to be completely abolished, despite the rightful concerns. On the other hand, being so innovative the blockchain steps on the toes of many financial institutions that have been a part of the system for a long time. Because these two sides of the issue are equally as important the problem is dealt with on a state level. That means each jurisdiction is left to work out a balanced solution for its own needs.

Is Тhere a Reason Cryptocurrency Gambling to Be Outlawed?

Indeed, that’s the very first question we need to ask because the last thing we want is to do something that’s illegal, right? With cryptocurrency, it all boils down to whether or not online wagering is legal in a country. In and of itself, online gambling is a divisive topic and still many express strong opinions against making it a legal activity. Being empowered by a revolutionary payment system such as Bitcoin, for example, gives significant leeway to those who want to wager real money. Some even argue that will make underage gambling impossible to prevent. Even though this is a very valid point, the chances are if a country allows online gambling, placing wagers with cryptocurrency will also be permitted.

Is Cryptocurrency Gambling Illegal in the UK?

On the territory of the United Kingdom, things are pretty binary – operators with a licence from the Gambling Commissions are legal and the rest are not. Now, whether the commission allows the use of crypto coins as a payment method is another thing. Actually, there’s no compliance rule forbidding the latter. As far as the operator is licensed, it can, for example, offer bitcoin as a method for depositing and withdrawing. So far, Bitcoin-centered businesses are not bound under the existing legislation to seek the approval of a regulatory body. That applies to businesses that are entirely dependent on the currency though, casinos that offer it as an alternative still need the licence. This is great news for the forward-thinking folks that want to take advantage from all the sweet benefits of the technology while playing their favourite games of chance.

Bitcoin Gambling in the US – is it Legal?

Running a bitcoin casino from the territory of the United States is illegal. For now, the only reference point that exists is the Unlawful Internet Gambling Enforcement Act (UIGEA) signed in October 2006. It’s the same piece of legislation that caused big poker operator like PokerStars to switch gears and start accepting cryptocurrency payments. In essence, the law forbit the gambling companies to cooperate with US banks and card-issuers. As you may imagine, this completely shut down the option for debit and credit card deposits and, needless to say, the gambling industry in the States suffered a great deal as a result. Gambling with Bitcoin is a completely different ball game though. It in a sense gets around the laws because there’s no third party involved, let alone a respected institution such as an international bank. Betting cryptocurrencies such as Bitcoin can be categorized as either legal, illegal or unlawful in the United States of America. For the most part, the free flow of crypto coins in and out of online casinos isn’t illegal. For example citizens of new Jersey, Nevada or Delware are welcome to gamble online, be it with bitcoins or not. The reason why most states in the US don’t explicitly forbid this type of gambling is because the majority of operators that are available on the territory of the country are based off-shore, which technically circumvent UIGEA’s requirement.

Do Cryptocurrency Casinos Need to Have a Licence and How Safe is Bitcoin?

The main purpose of a gambling licence is to serve as a proof of the legitimacy of the company owner, so that it can set up a bank account that will allow it to process card payments and wire transfers. With the advent of blockchain technology, however, the middleman (banks) have become redundant because this is a self-governed system. This, in practice, means that online gambling facilities can function without a gambling licence as far as they are adapted to work with payments made over the blockchain. It’s not as bad as it sounds because the such transactions are near-instant and secured by strong encryption. In this way, it becomes a matter of personal preference whether you are going to put your coins in the hands of an unlicensed operator or a reputable one that has a gambling licence. There are iGaming operators on both sides of the spectrum that accept cryptocurrencies.

What’s the Future of Cryptocurrency?

As an idea, it will likely go far but to give an absolute answer is impossible because the existing types of cryptocurrencies are just as different as they are similar. That’s why their market values aren’t the same. In truth, this is what trading is all about, predicting which currency’s price will rise in and whose price will drop. Anybody who had these answers would be millionaire. What we know is that Ethereum, Litecoin, Bitcoin, Ripple all use different technology that comes with its own distinct advantages and disadvantages. In theory, the framework finds application in voting, gaming, online payments, and other fields. The best thing we can do is throw in an educated guess that the blockchain is going to be big one day, but which day exactly, no one knows.