UK Gambling Commission Warns Bitcoin Operators to Get Licensed or Face Penalties
Bitcoins have become one of the more practical ways to do financial transactions online mainly for online gambling. The cryptocurrency has more reasons than not to be a preferred method for its anonymity with use. Anonymity is just one reason why it’s been embraced as a payment method throughout the online gambling industry. There are a couple rules to the brand that operators have endeavored. These are anti money laundering tactics and know your customer.
Bitcoin differs depending on the jurisdiction. The UK government, back in 2013, suggested that all businesses based on bitcoins would be exempt from registering with regulators because bitcoins wouldn’t be treated as money, they were classified as single purpose vouchers.
Bitcoin based operators that offer gambling services to residents in the UK have been warned by the UK Gambling Commission. The warning says that a license is required by all operators who offers services no matter which currency it’s being conducted through. The UKGC says that “an operator needs to be licensed by the Gambling Commission regardless of where they are located in the world, if they provide facilities for gambling to consumers in Great Britain.”
“We wrote to these operators because they were either advertising gambling illegally or illegally offering gambling products to consumers or both,” said UKGC CEO Jenny Williams. “The Commission neither prohibits nor encourages bitcoin. We are interested only in ensuring the proper regulation of gambling products consumed in Britain.”
The UKGC made it clear that they don’t encourage or prohibit bitcoin. They said they are only interested in proper regulations of all gambling products in the UK.