Where Are Crypto Casinos Legal?
With Crypto currency taking a rapid rise in popularity over recent years, it has disrupted some of the wealthiest industries in the world - with the gambling industry seeing significant impact. These days, crypto casinos have entered the market and they allow players to wager using their digital wallet currencies such as Bitcoin, Ethereum & so on.
This surge in popularity is easy to understand given that wagering this way allows players more anonymity, lower fees and faster transactions.
However, despite the crypto casino industry being set to be worth over $65 billion by 2027, the legality of these platforms varies a great deal depending on which country you’re in.
Legality of Crypto Casinos
There are two important elements to consider when trying to establish if crypto casinos are legal in a country; first and foremost, the legality of crypto currency itself. Within some countries the use of crypto assets are banned completely and therefore this is not classed as a valid form of payment in any sense.
This is the case within China for example, they do not allow any crypto currencies and they also do not allow any form of gambling, which brings me to the second element to consider - the legality of gambling. Within many countries all forms of gambling are illegal - yet in others only online is - therefore the crossover of crypto currency and casinos can get quite complex depending on each country and/ or state's rules.
The UK is in-herently known for having a robust and well-regulated gambling market; which is overseen by the UK Gambling Commission (UKGC) and covers all forms of gambling from online to crypto casinos. To operate legally within the UK, crypto casinos must get a license from the UKGC which involves strict requirements when it comes to things like player protection and fair play. Whilst the UK is open to crypto casinos, it is imperative to comply with regulatory standards.
When it comes to favorability, Malta is amongst them for having one of the more flexible regulatory environments vs others. The MGA is one of the most respected regulators globally, and allows Malta to accept openness when it comes to cryptocurrencies. This means that operators can obtain special licenses to be able to run crypto casinos on their platforms.
In contrast the USA’s legal status on crypto casinos is rather complex as it is governed by both federal and state laws. Federal laws are regulated by the UIGEA, which doesn’t explicitly ban online gambling however it does make it challenging for operators to function within the legal framework within their rules.
Also within the USA each individual state has their own laws when it comes to gambling. For example, Nevada and New Jersey are more tolerant allowing regulated online gambling; yet others such as Washington have strict laws prohibiting. Therefore when it comes to crypto casinos, the water is rather muddy with a lack of clear direction on the regulations. Some states are inclined to interpret existing laws to include crypto gambling under traditional gambling laws, whilst others do not address it at all.
Similarly, in Germany where crypto casinos are concerned they are not explicitly mentioned within the regulation of online gambling - which has recently been reformed. Though the focus is primarily on traditional online gambling, the use of cryptocurrencies for gambling is also in a gray zone. Anyone operating in this space would have to tread very carefully, ensuring to abide by the broader regulatory requirements and await clearer clarification on crypto use.
By contrast, in Japan their regulations surrounding both gambling and cryptocurrency are very strict, with gambling being considered illegal; with exceptions being betting on horse racing and some other sports. Though in regards to cryptocurrencies, they are recognised and regulated under the Payment Services Act - meaning they are widely accepted. But, with similarities to the USA, the intersection of crypto and gambling is not clearly outlined, making it quite a challenge for crypto casinos to operate within Japan.
Then you have certain countries where both gambling and cryptocurrencies are strictly prohibited - as mentioned above - China. Except for state-run lotteries, all forms of gambling are illegal. Furthermore, China has cracked down hard on cryptocurrency trading and mining activities making it even harder to access, it also makes crypto casinos undoubtably illegal and accessing such platforms within China could result in some serious penalties.
As you can see from some of the examples mentioned, the legality of crypto casinos varies world wide and is influenced by each country’s rules surrounding both gambling and cryptocurrency. Whilst some have established clear regulatory frameworks, like the UK and Malta, others remain confusing and prohibitive when it comes to either or both. Regulations are changing constantly, therefore it is advised to be aware of them.
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