Bitcoin Casino: Cryptocurrency Market Trends and Terms of Regulation

Online casino
05 july 2021

Creating a Bitcoin casino with the use of decentralised technologies is the most interesting up-and-coming trend. According to Dapp Review reports, the better part of the Ethereum Blockchain projects is slot machines. Gaming platforms also account for 8 out of 10 applications in the TRON ecosystem.

In this article, Online Casino Market experts will explain the decentralised technologies, their advantages to gambling operators, as well as, how to initiate a Bitcoin casino within the law.

Blockchain Technologies in Gambling

Blockchain technologies in gambling

The work of Bitcoin casino software is based on smart contracts. These are deterministic projects, performing a series of operations under given conditions. The inner functions of the platform (counting of bets, winnings, and payouts to users) are carried out automatically. Brokers are not involved in their formation, which greatly increases the speed and security of transfers.

Transaction data is stored on the devices of all project participants. Although each of them can view this information, the contents of the smart contract cannot be changed. Any impact on the program block will lead to a complete alteration in the entire chain.

Major features and facilities of decentralised technologies:

  • Bitcoin casino software works without servers since all system operation data is stored on the devices of users;
  • information blocks are protected by cryptographic technologies, the transaction details can be viewed only after confirming the wallet number and specifying a personal key password;
  • the system automatically blocks any unauthorised access; the same applies to the attempts to change smart contracts.

Crypto Casino Security: How Decentralised Technologies Protect Users

The Bitcoin casino script is developed under the principles of absolute transparency. Smart contracts contain encrypted information, available for view for web users. This approach not only allows for closely monitoring all transactions during the game but also improves the brand reputation.

Tools for protecting visitors of a decentralised site with slot machines

Open casino balance

Each generated information block has a Blockchain address. A gambler can use browser programs and get complete information about personal balance and payment history

Provable fairness of a game

Decentralised technologies can be used not only to control financial transactions within the system but also to evaluate the integrity of the institution.

Smart contracts include information about completed bets and winning combinations. At any time, the operator can check the result of the drawing and assess compliance with the declared return percentage. Any third-party resource can be used. The administration of the site does not affect the result of the check

Affiliate network control

The conventional online platforms may hide some affiliate traffic data or set high commission limits.

Blockchain technology automatically records statistics on engaged players in a public registry. A partner of a casino can check the compliance of payments for new users at any time

Crypto Casino and Laws: Market Regulation in 2022

Crypto casino and laws: market regulation

In addition to the structure and technological facilities of decentralised technologies, a gambling licence guarantees the honesty and reliability of the casino.

When choosing a jurisdiction to buy a gambling firman, it is worth considering the global practice of cryptocurrency regulation.

The basic forms of digital market control in different regions:

  1. The USA and Canada. These two countries try to introduce cryptocurrency into the financial and legal spheres. They are loyal to the industry and are working on its further development. Both countries allow crypto exchanges, mining farms, etc. Also, the new Google search engine program helps to popularise the market. Since 2020, it has been officially allowed in the US to advertise and promote any kind of Blockchain product.
  2. Asia. The policy of eastern countries on Bitcoin is ambiguous. In Japan, such coins are recognised as full-fledged payment instruments. China tries to actively monopolise the market, conducting a tough campaign to close mining farms and wipe out the cryptocurrency from the population.
  3. European Union. In 2016, the European Commission suggested a program of additional control of crypto projects with their mandatory registration and certification. Since 2017, there is a decision on the mandatory identification of visitors to digital exchanges. Measures to fight money laundering have intensified. Though in 2020, the 5th EU Directive came into force, listing the norms for global security and the integrity of the traditional financial system.
  4. CIS countries. In Russia, the law "On CFA" has been in force since 2020, which equates cryptocurrency to property assets. However, operators cannon use it as a financial instrument. In Belarus, any Blockchain companies are legal from 2017 and will be exempt from taxes until 2023. Also, Ukraine adopted the law "On Virtual Assets" in 2020. It is designed to regulate the internal market and guarantee participants protection against fraud and money laundering.

Which Country is Best to Launch a Blockchain Casino in 2022

When choosing a jurisdiction to buy a licensed Bitcoin casino, there are several things to consider:

  • the political and economic situation in the country;
  • the level of development of financial infrastructure and related industries (tourism, hotel business, IT sector);
  • the existence of a legal framework for regulating the gambling market;
  • quality of working conditions in the international sector;
  • the level of the tax burden on business;
  • the efficiency of legal support for gaming operators;
  • variants of licences by types of games and their cost.

Online Casino Market experts recommend purchasing a turnkey Bitcoin casino with licences from the following countries:

Germany

The state demonstrates loyalty to the gambling industry and has officially recognised digital coins as a financial instrument. The local authority has set the rules for working on the Internet, as well as, provided the opportunity to use electronic money for payments in the ground sector. There are already more than 52 crypto ATMs in Germany.

Ireland

The country has implemented the 5th EU Directive and significantly strengthened the rules for controlling the industry. This approach has made the region's gaming market safer and more transparent.

Spain

Industry control is based on the program of mandatory registration of crypto-entrepreneurs in the Central Bank database. The administration will require operators not only to identify themselves in the country's financial base but also to disclose assets and the number of annual profits in public registers.

One of the priority areas for the development of the Spanish financial system for 2020–2024 is the introduction of its national cryptocurrency.

Estonia

From July 1, 2021, the policy of control of the industry has been changed. Now, a Blockchain start-up entrepreneur has to provide a package of documents for business certification and register a physical representation in the country. The staff of the institution must include the native residents of the country.

The term for obtaining an additional licence for cryptocurrency transactions is 60–120 days. The amount of commission fee is up to 3,300 euros.

Gibraltar

The offshore countries have taken significant steps to protect cryptocurrency market participants from fraud and money laundering. The new directive implemented in 2020, tightened industry regulation and allowed Blockchain casino owners to collect complete customer information.

New recommendations on the operator's work have clarified the problem of digital coin issuance and provided access to a modernised risk management program.

List of Digital Currencies for Investment in 2022

Digital currencies for investment in 2022

The creation of Bitcoin casinos allows to pre-select the list of electronic coins and fiat tokens in which transactions will be conducted within the system.

We recommend paying attention to such currencies:

  1. Ethereum. The second-largest cryptocurrency after Bitcoin with an aggregate capitalisation of $70 billion. In addition, the platform supports several third-party payment programs and cryptocurrencies.
  2. Ripple. By the end of 2020, the platform had provided support to 300+ providers from 40 countries. Among the partners of the system are the second largest bank in the United States (Bank of America) and India's largest financial institution (HDFC Bank Limited).
  3. Litecoin. The token capitalisation is 5792 dollars. The system operators note a high speed of mining compared to similar services, and a good reward for the unit. Throughout its existence, the currency has never left the list of the top 10 most popular crypto assets in the world.
  4. TRON. This network was created for the gambling and entertainment industry. The platform gives the opportunity not only to pay in digital currency but also to exchange content. The system partners include such well-known brands as Samsung and Baofeng (the Chinese analogue of Netflix).

The Main Things about the Security and Legality of the Cryptocurrency iGaming Market

Digital coins are equal to gold assets and worthy of competition with traditional financial instruments.

  • Bitcoin casino is nowadays one of the most successful areas of investment. The market capitalisation reached $77 trillion and continues to grow. More than half of decentralised applications are in the virtual gaming sector.
  • The cryptocurrency market is safe and protected by international law. Certification of such projects is carried out by many large and most developed countries (USA, EU, Asian, and CIS states).
  • Licensed Bitcoin casinos can operate legally. Furthermore, the operator not only acquires international status (for example, in Estonia) but is also released from some tax fees (from 2023 in Belarus).

The gambling operators can learn how to legally run a Bitcoin casino in the Online Casino Market firm. The professional team takes care of all organisational and legal issues. The only point is to choose the format of the work set up the promotion program and make a profit.

The most promising available developments of recent years are:

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Karen Fill

Author

Karen Fill

Gambling business expert at Online Casino Market

05 july 2021