Crypto Casinos: A Gateway to The World of Crypto
March 26, 2021
Things move quickly in the world of cryptocurrency and the value of assets like Bitcoin have recently risen to their highest price in years.
When markets continually experience price hikes of the like we’ve seen recently, investors can feel they have missed the boat and the bubble will inevitably burst…
But there is a way of gaining access to the party without paying today’s high prices.
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.
The World of Cryptocurrency
A cryptocurrency is a digital or virtual currency which is used as a medium of exchange. It is similar to real-world currency, or what is known as ‘fiat’ currency (currency where the value is backed by the government that issued it), but for the fact it does not have any physical embodiment and uses cryptography, which makes it nearly impossible to counterfeit or double-spend.
On the one hand, cryptocurrency is entirely anonymous. On the other, it is completely transparent and trackable. The paradox of cryptocurrency is one that we explored in a recent blog post.
Bitcoin was the first blockchain-based cryptocurrency and remains the most popular and most valuable. Today, there are thousands of alternate cryptocurrencies with various functions and specifications.
Cryptocurrency has long been seen as a volatile market, with rises and falls of 40% or more in a matter of days not uncommon. But as it is seen as an alternative to fiat currency, when investors lose their confidence in a traditional currencies because of economic or political events, they can turn to Bitcoin or its rivals, pushing up the price.
As such, cryptocurrencies’ value has been on an upward trajectory for some time now and many currencies have recently hit their highest ever value, helping some savvy investors capitalise on massive gains.
How do Crypto Casinos Work?
Crypto casinos are classed as any form of online casino or sports betting agency that accepts cryptocurrency as a form of payment. Typically, they do not only offer traditional casino games such as roulette, but further sports-based betting, online lotteries, and spread betting.
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.
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.
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. 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.
One major difference between crypto casinos and traditional casinos is the ‘fairness’ of games. Crypto casinos are seen to offer fairer games compared to traditional casinos as they have a ‘low house edge’, which makes it easier for players to win.
Crypto casino sites have also typically 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.
Historically, cryptocurrency has been seen as a volatile market. But its value has been on an upward trajectory for some time now; the value of Bitcoin for example recently topped $60k. This has left some feeling they’ve missed the crest of the cryptocurrency wave, but crypto casinos offer a gateway to the market. Since winnings are paid out in crypto currency, a healthy win can see punters walking away with a prized asset on the up.
How We Can Help
Here at Acuant, we provide a range of solutions and specialise in cryptocurrency & crypto casino KYC checks. We offer global verification that takes seconds and all of our solutions are available via our single API, Sodium.
Utilise a single element or multiple processes – it’s entirely up to you. Learn more about how we can help to automate and simplify your verification processes to help you to learn more about your customers.
Book a demo today and see for yourself how powerful our suite of solutions are.