Governments all around the world are racing to regulate cryptocurrencies and develop their own digital currencies backed by central banks. For years, the idea that income tax hungry regulators want to make cryptocurrencies illegal or throw people in jail has been somewhat of a dark cloud that hovered over the heads of even the most hopeful cryptocurrency enthusiasts. Now that Bitcoin is seen as an institutional investment and a store of value rather than a replacement for day-to-day transactions, governments have no choice but to develop regulations that still embrace the use of digital assets as investments.
Still, the relationship between cryptocurrencies as investments and cryptocurrencies as a threat to overthrow governments is a tenuous one.
Surprisingly, the threat of regulating Bitcoin and the way cryptocurrency exchanges trade it with customers might actually help gambling as much is it would curb the desire to use an exchange. Let’s go deeper into why that is.
U.S. Secretary Hopes to Impose New Regulation on Crypto
Steven Munchin is the U.S. Secretary. He’s proposing new regulations that corporations doing business with cryptocurrencies to not only follow Anti-Money Laundering and Know Your Client policies, but also to only do business with other companies that follow those very same policies.
This level of regulation is designed to crush illegitimate businesses from operating and protect consumers. It is not necessarily designed to cool off cryptocurrencies as an asset class.
That doesn’t mean some major influencers in the world of cryptocurrencies don’t like what’s coming down the pipeline. Brian Armstrong is the CEO of Coinbase.com, one of the largest and most utilized cryptocurrency exchanges in the world. Armstrong believes that new regulations could stunt the growth of the cryptocurrency economy. He tweeted as such recently after it was announced that Coinbase would have to restrict margin trading on its platform.
How Proposed Regulations Could Help Bitcoin Gambling
Many of the world’s most exciting, most profitable and most trusted Bitcoin gambling sites operate out of small offshore countries with favorable Bitcoin, tax and business regulations. Knowing that, you may think these businesses are totally immune to whatever happens with regulations. But the truth is, it’s likely that most Bitcoin gambling sites that have been around for at least a few years and established some credibility in the Bitcoin gambling arena probably welcome regulation.
Yes, regulation might mean that a Bitcoin casino has to follow more rules in order to appeal to American customers, but it’s also important to consider that even most Bitcoin gambling operators who are thriving offshore are missing out on a huge chunk of the market because they have to restrict the use of their gambling platforms to countries that do not include the United States.
The truth is as much as gambling is a competitive industry and Bitcoin-friendly sites are always vying for your entertainment dollars, they also operate within a unique bubble that presents unique challenges to business people looking to turn a profit in the industry. This means that there is added incentive for Bitcoin gambling operators to work together and make sure they comply with regulators. Ultimately doing just that not only has the potential to open up gambling operators to American customers, it also shows American gamblers and gamblers all around the world that Bitcoin-friendly sites are legitimate and safe to use.
Trust is huge when it comes to online gambling, especially when you’re running your business through cryptocurrency.
The Future of Bitcoin Gambling Is Bright Regardless
Nobody likes the feeling of having somebody look over their shoulder. Most gamblers probably want the fun and excitement they experience online to remain a private endeavour. That’s understandable. The truth is that the future of gambling with Bitcoin is bright regardless of what regulators do. If regulators behave in a way that makes it difficult for people not living on an island to gamble, cryptocurrencies will still grow in value and those that are already gambling with them will still continue to do so.
If the opposite happens and the floodgates open, operators will have a world of opportunity in front of them. Thus, the future for Bitcoin gambling is bright no matter what regulators try to do about it.