Cryptocurrencies have taken the gambling industry by storm when it comes to paying in and paying out from accounts and also with the emergence of entirely crypto-operated gambling websites.
Even a few short years ago, these names of Bitcoin and others were just seen as a flash in the pan, a fad, but now they are a big part of finances in general, and a big part in online gambling.
A cryptocurrency is a set of digital numbers users assign a value to, then used to make purchases just like normal money or transactions.
Cryptocurrencies like Bitcoin can be used to deposit to gambling companies and take out winnings back by the same method and then be converted back to regular cash.
We won’t bore you with all the details, but you might want to visit the Blockgeeks guide on “What is Cryptocurrency?” should you want to know everything, or even just a little bit more.
The Macau Approach
The big change in the news this week is emanating from Macau, who although not pertaining directly to gambling companies or cryptocurrencies use in this industry specifically, have made moves to control or even more drastically, remove the currencies from usage in the country.
The details issued by the AMCM – The Monetary Authority of Macau – state that any business involved in virtual currency (cryptocurrency) is not authorized to receive support, advice or any type of financial input from financially sectored institutions that are located in or operating within the region.
The reason behind this is the fear and wanting of security for money-laundering and to be able to “track” all of the money in and out of Macau to guard against terrorism and any other illicit activities that virtual currency may help in hiding.
How much of an effect this will have on gambling companies are not entirely known right now – the gross revenue of Macau Gaming rose by 20%
in recent reports and it’s difficult to know how much of this was sourced, or funded by, lost by and covered by virtual currency users.
The notice to all applicable companies or operators was issued and dated on 20/09-2017 and serves as a severe warning to those involved that no banking, payment or financial company may participate in or be remotely involved in financial support, advice, service nor funding of any activity that has relationships in or to any sort of Cryptocurrency.