The popularity of cryptocurrencies has greatly affected online gambling. Platforms where you can make deposits using crypto are becoming the majority. And even appear separate games like ltc dice. Even major sites are adopting these technologies.
Fast transactions and low fees are just about crypto. And this is causing regulators to be securitized. It’s hard for them to understand what it is and how to regulate it.
Cryptocasinos are often in the “gray” zone. But not always and not everywhere. It’s often all thanks to blockchain. But let’s understand how the platforms do it in more detail.
Decentralization and Lack of Oversight
The most key factor is decentralization. This is what helps crypto to circumvent the rules. And not just in casinos.
Traditional online casinos operate under licenses and jurisdictions. And crypto platforms are mostly on decentralized bases. Because of this, it’s difficult for authorities to enforce laws, monitor transactions, and restrict users.
Some platforms even work with decentralized autonomous organizations. They are almost impossible to regulate and impossible to shut down. But things may change in the future.
Anonymity and Lack of KYC Requirements
Basically, classic online casinos require their players to go through the Know Your Customer procedure. This is to verify identity and prevent fraud, money laundering or bot influx.
But quite often, crypto casinos bypass this procedure. That’s because you can make transactions anonymously. The casino may not even know who you are or what you do. All you need is a cryptocurrency wallet address.
This increases the anonymity of players and makes them harder to track. Therefore, they are difficult to restrict or prosecute.
Jurisdictional Loopholes
Crypto platforms register in jurisdictions with more casino comfort. These are essentially offshore platforms. And they are quite difficult to regulate and shut down. You can ban players from playing on them, but it’s hard to regulate.
Offshore registration allows such platforms to offer services to players around the world without facing strict regulatory scrutiny.
Crypto is not tied to any country. It is because of this that you can open online platforms that will work anywhere without regulation. And without being tied to the banking system. This allows players from strictly regulated countries to play safely and not worry.
Use of Privacy Coins
The most popular currencies for casino gambling are still Bitcoin and Ethereum. But it is altcoins or memcoins that are increasingly coming into popularity. More and more platforms are starting to use them.
But you can not forget about coins that are more concerned about privacy than others. These are coins like Monero and Zcash.
These cryptocurrencies hide transaction details, making it even more difficult for regulators to track gambling activity.
This feature allows users to circumvent gambling restrictions imposed by their governments or financial institutions.
Conclusion
Crypto is a very big thing in the gambling industry. It has simply made an invaluable contribution to the industry. And it continues to do so.
Not always the contribution helps in regulating casinos, but more often the other way around. But that’s not a bad thing. The sphere is evolving and becoming more public, which helps to promote and develop new regulations aimed at saving the user’s money.