Crypto Casinos: Should You Roll the Dice?
May 21, 2021
Thinking of entering the world of cryptocurrency but worried you’ve missed the crest of the wave? Or maybe, you aren’t entirely sure of its safety… Don’t worry, you’re not alone.
Things move quickly in the world of cryptocurrency, but Bitcoin and the like remain prized assets. Crypto casinos offer something of a back door to the party, so should you get involved?
Below is a list of all the topics we will cover in this article. Go ahead and click on any of these links, and you’ll be taken to that specific section.
What are Crypto Casinos?
We’ve previously explored cryptocurrency and crypto casinos in depth on this blog, but crypto casinos are classed as any form of online casino or sports betting agency that accepts cryptocurrency as a form of payment.
Cryptocurrency has found favour amongst internet casinos thanks to its pseudonymity and ease of transfer. It is anonymous in the sense that you can hold a crypto address without revealing anything about your identity in that address. One person could hold multiple addresses, and in theory, there would be nothing to link those addresses together, or to indicate that the person owned them.
Typically, crypto casino sites have been able to offer zero transaction fees with unlimited free daily transactions – distinguishing themselves from their counterparts which rely on fiat currency. In some cases, crypto casinos have also been able to advertise larger jackpots and extensive profits, given that their operating margins can be significantly lower.
Regular online casinos must comply with AML & KYC regulation and players need to verify their identity before using their service. This safeguards vulnerable people by restricting access to the platforms, and helps prevent illicit activity and financial crimes.
However, it is not mandatory to use a KYC cryptocurrency exchange to trade. A number of exchanges legally operate in jurisdictions that do not mandate KYC, placing them in a grey area in terms of legal obligations. This essentially means there is nothing to stop one user opening hundreds of ‘addresses’ and use them to transfer money between accounts without encountering any red flags.
Should You Get Involved?
One thing you can count on in the world of crypto compliance and regulation is how unpredictable it is. Anti-money laundering regulations are changing all the time and businesses dealing in crypto assets must be prepared to move swiftly, adopt new standards, and protect their business from regulatory scrutiny.
The price of assets recently dropped after China imposed fresh curbs on cryptocurrency and Tesla said it would no longer accept it as a means of payment. Up until now, Western regulators have been pretty relaxed about cryptocurrency, but China enforcing new regulations may encourage other markets to do the same. To stay ahead of regulators, exchanges should add identity verification services to different points within their environments, to help reduce money laundering and meet compliance standards.
Cryptocurrency has long been a volatile market, with rises and falls of 40% or more in a matter of days not uncommon; some would say the crypto market in itself is a casino. It has been seen as an alternative to traditional (fiat) currency, so when investors lose their confidence in a fiat currency because of economic or political events, they can turn to Bitcoin or its rivals, pushing up the price.
However, crypto casinos offer a gateway to the market and since winnings are paid out in cryptocurrency, a healthy win can see punters walking away with a prized asset.
As with any trading, gambling, or online transactions, the best way to ensure financial safety is to go through verified, secure, and trustworthy mediums. Like you would with any other online gambling site, ensure that you research thoroughly before betting:
- Ensure that the crypto casino has a valid gambling license.
- Opt for casinos that offer multi-factor authentication.
- Check the response and authenticity of the website’s customer service.
- Research beforehand and check authentic customer reviews and feedback.
It is also best to gain adequate knowledge and awareness about cryptocurrency in general, before you begin. Crypto casinos are safe, as long as you choose reliable, trustworthy, and vetted ones.
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