Ever since the adoption of cryptocurrency into mainstream society, governments worldwide have been keeping a close eye on the state of the markets as well as working to understand the blockchain, how it works, and more importantly, what it can offer in terms of opportunities. Whilst the potential use for blockchain technology is undeniable, many were critical of the dangers of adopting crypto, waging war with the die-hard supporters of some of the most popular chains.
The Curacao crypto-casino boom
The popularity of crypto-backed casinos over the last few years has exploded, after providers such as Stake caught the world’s attention from twitch-native streamers who attract thousands of concurrent viewers. Stake, in turn, secured extremely lucrative sponsorship deals with the likes of Everton football club, the UFC, and multiple sports and gaming icons. The number of crypto-backed casinos has gone from few and far between to a flurry of license requests, as regulators identify both the potential of using blockchains but also the reliability of having publicly accessible data.
With that in mind, bitcoin casinos are getting popular, with multiple regulating bodies such as the Curacao gaming authority and the Malta gaming authority warming to the idea of using blockchains, and with MiCA rolling out in Europe, it’s likely there will be more competition coming from multiple bodies and locations worldwide.
Many are aware of casinos and where they operate, mostly spanning between Curacao, Malta, and Gibraltar, however, for crypto-backed casinos, the hot spot is Curacao, with more licenses for crypto casinos being handed out and this only seems to be accelerating. Some central authorities are ramping up their efforts to block the sites in countries such as Australia. With that being said, the Malta Gaming Authority has also started allowing cryptocurrency to be used in casinos, with BetConstruct now able to offer crypto solutions for deposits. This is, however, a trial period, whilst the MGA analyses the effectiveness of allowing crypto-solutions.
Furthermore, the MGA has recently published its Virtual Asset directive, which will allow operators to begin using virtual assets and blockchain technology for their infrastructure, an extremely promising directive and will likely start a trend of casino operators using the blockchain for its advantages. Ultimately, the blockchain is accessible to all and an open network for information can only be a positive.
The United States has also recently started looking to regulate both cryptocurrency and online casinos, which has lit a fire in the eyes of innovators and is likely to produce a vast amount of interest. It’s no secret that some states in the USA do allow players to gamble online, however, the grey areas are extremely prominent, and more work needs to be done to fill in those lines.
For example, the gambling capital of the state, Las Vegas, does allow the public to place sports bets and play poker online, however, the use of full online casinos is not permitted. On the other hand, Delaware, Pennsylvania, and New Jersey allow for all forms of online gambling. Knowing this, it leaves a lot of room for improvement and all-out federal regulations are only a few steps away.
Moreover, crypto such as ‘the big orange coin’ or Bitcoin, is an asset that is taxable in the USA, so the use of online casinos will also bring many questions such as how much should be taxed on those realized or unrealized gains, this is yet to be cleared up and many Americans currently make the most of the grey areas, however, the framework is only a few steps away for this to change.
Europe draws closer to rolling out Crypto asset regulations
Since October 2022, the framework for MiCA (Markets in crypto-assets regulation) has been the talk of the crypto space. Often referred to as the ‘wild-wild west’, due to the dark sides of these cryptocurrency communities, it’s promising for blockchains and blockchain technology to have central backing. Despite the potential drawbacks of regulating, this would ultimately instill further trust, which in turn, will attract more users of the ground-breaking blockchain tech.
With that being said, everyday users of the blockchain are eagerly awaiting the roll-out of MiCA and the chain reaction it’ll likely set off. Rumored to take effect as of 2024, it’s predicted that the framework set out will be the general template for other regulators worldwide. Once this occurs, it’s not too far-fetched to believe this will have a snowball effect and it’s assumed crypto assets will be regulated worldwide within the next few years.
The simple fact that the UK government is looking into implementing a digital currency has in fact given mass hope to those invested in cryptocurrency markets, as they are somewhat distant relatives in terms of purpose. As quoted from Jeremy Hunt, the frameworks should be in place by 2025, with the CBDC released later this decade.
