The rising popularity of digital assets, and in particular cryptocurrencies has been great news for developers, investors, and businesses tailored to its users. However, its rise to prominence has drawn the attention of regulatory bodies who have concerns about its use.
The rapid nature of its success and development has resulted in regulations in some industries struggling to keep up. The gambling industry is an excellent example of this and was one of the first industries to fully embrace cryptocurrencies and blockchain technology.
Dedicated crypto casinos began to offer US consumers an excellent way of working around local gambling regulations. At present, only six states offer legal online casino gambling, but regulations only cover the operation of such businesses, making it legal for consumers to visit offshore casinos.
Many crypto casinos now offer an excellent alternative for consumers in prohibitive states and regions, with Stake being widely recognized as one of the leading options.
However, Finance expert Milan Novakovic explains that the popularity of the market has seen the creation of some excellent alternatives to Stake casino that support crypto use and increase accessibility for consumers. The speed of transactions, the mobile-friendly gaming features, and the no-hassle registration procedure are only some of the features that he highlights as the most optimal for new and old players.
But how did we get here and what regulatory measures are brewing as we speak?
The Rise of Digital Assets
While digital currencies had been discussed since the 1980s, it wasn’t until 2009 when Bitcoin was launched that consumers had the opportunity to invest in it.
The following years saw other cryptocurrencies launch, sometimes called altcoins, with different benefits like faster processing times or decentralized domain registrations.
2015 saw Ethereum enter the market with programmable smart contracts, transforming the crypto landscape. ICOs (initial coin offerings) became commonplace on the Ethereum network, helping to raise funds and giving investors an early opportunity to purchase.
2017 saw cryptocurrency hit the headlines as Bitcoin’s value continued to defy the odds and increase. However, the “crypto winter” of 2018 brought prices plummeting back to earth.
This did not deter supporters and DeFi and NFTs both grew in popularity during 2020, Bitcoin adoption grew and helped it surpass previous high values, and governments began exploring crypto investment and adoption.
Regulatory Concerns
Regulatory concerns arising from crypto growth include control over who is using it and how. Cryptocurrencies provide users with several great benefits including easier international transfers, lower fees, faster transactions, enhanced security, and greater online anonymity. But it is this last benefit that is causing concern for some.
Being able to make payments, purchases, transfers, and gamble without the need to upload identification documents or provide bank or payment details appeals to many modern internet users. It helps reduce the risk of data theft and facilitates quick and easy transactions.
The main issue for governments and regulatory boards is that this anonymity could be used for nefarious purposes. Anti-money laundering regulations require financial institutions and other businesses that operate directly with money to ensure their customers pass KYC (know your customer) checks.
These checks mitigate the risk of financial crime, the funding of terrorism, and money laundering. This could see measures put in place that could chip away at some of the freedoms afforded by crypto.
Regulatory Framework
Fast-moving developments in the crypto world have resulted in some regulations overlapping or gaps forming that don’t meet the needs of crypto regulations. It has been suggested that a dedicated regulatory framework needs to be devised in a way that can adapt to market changes.
Internal Controls, Procedures, Compliance, and Risk Policies
The integration of digital assets into existing compliance programs could help things move forward more quickly, and an emphasis on ensuring businesses implement strategies that include training staff would help with this.
The existing and new casinos alike need to constantly undergo strict supervision procedures, from complying with ISO standards to providing enough evidence they’re secure from hacker attacks (e.g., the PCI Compliance standards). Even though most crypto casinos aren’t localized and are hence subject to international laws and standards, it’s in their best interest to meet all the requirements set by global regulators. After all, in the case of data breach or theft, they might make up for the lost assets, but recovering from getting a bad reputation is a much more demanding goal.
