LEGAL STATUS OF BITCOIN CRYPTOCURRENCY AND BITCOIN CASINOS
Amid the international recession and the European debt crisis in 2009, the level of confidence in banks and fiat currencies has declined. It was the global crisis that created the ideal conditions for the birth of the most popular cryptocurrency Bitcoin.
BITCOIN: FROM EXPERIMENT TO CURRENCY
It started in the 90s, when in the heyday of the Internet, developers and computer geeks began to think about creating their own payment system. Its peculiarity was independence from the government, various state institutions, and banks. However, due to the absence of the necessary resources at that time, all their attempts failed. This continued until the fall of 2008.
On October 31, 2008, hundreds of IT specialists received a letter from Satoshi Nakamoto. The link indicated in the letter led to the site of the payment system with its own digital currency bitcoin, which worked on the new Blockchain technology.
In the meantime, an economic crisis has wrapped the world. The oldest American bank Lehman Brothers collapsed. Bankruptcy threatened such large mortgage companies as Fannie Mae, Freddie Mac, AIG. This prompted the authorities of the United States, Britain, France, Ireland and the governments of other European countries to invest hundreds of billions of dollars in saving their banking systems. Then, many citizens lost not only their financial savings but also their credibility with banks.
- In 2008, the official website of bitcoin decentralized payment currency was created.
- In 2009, the first bitcoin client was released and the first block was created.
- In 2010, the first bitcoin e-currency exchange center was created.
- In July 2010, the first bitcoin exchange MtGox owned by Jed McCaleb started its operating.
- In 2011, there was a marked decline in demand for digital currency.
Bitcoin remained in the shadows until 2013, when the second wave of financial crisis surged in Europe. It was then that citizens realized that they needed a new way of storing their funds in order not to depend on any bank or government. And this decision was bitcoin.
Any state is interested in the issue of distribution of financial allocations and cash flows under their control. The central bank can control any transactions through consumer bank accounts. There is always an intermediary between the user and any other counterparty. For example, in settlements, it can be a bank or a specialized controlling tax authority.
Bitcoins have created a system that eliminates the need to work with banks. The user contacts directly the counterparty making any financial transactions. This excludes a state as an intermediary from the chain. This is the main reason that many states have not legalized cryptocurrency yet. Despite existing concerns, a number of countries have legalized digital money.
COUNTRIES WHERE CRYPTOCURRENCY IS LEGALIZED
In May 2017, the Japanese government issued a directive on the legalization of cryptocurrency as a commodity. That is, any electronic currency was subjected to VAT. Japan is the first major non-offshore jurisdiction that legalized cryptocurrency. Such a landmark event was the cause of the crazy growth rate and the emergence of all the planetary “hype”.
Singapore is the second jurisdiction that legalized digital money. In Singapore, as in Japan, the cryptocurrency was legalized as a commodity and subjected to VAT.
Another major jurisdiction where Bitcoin was legalized was Switzerland. In the country, the crypto was legalized as a means of payment, and this was done in Zug canton. Today, Zug is home to many large crypto companies. In particular, there is the main office of Ethereum.
After Switzerland, Denmark and Sweden accepted electronic money at the state level.
In addition to the countries mentioned above, Bitcoin is recognized as a legal payment method in the USA, Canada, the Czech Republic, Norway, Germany, Estonia, South Korea, the Netherlands, and Finland.
Cryptocurrencies are forbidden in Iceland, Bolivia, Ecuador, Bangladesh, Kyrgyzstan, Vietnam, Indonesia, China, and other eastern countries.
Today, many states have not decided on the status of cryptocurrency yet. Australia is a bright example. Despite the desire of many officials to bring digital currency to the level of fiat money, the authorities are in no hurry to do so. In support of their bill, supporters of the crypto legalization have even created a group called “Parliamentary Friends of the Blockchain”.
In addition to Australia, the UK is on the threshold of choice. At the moment, cryptocurrencies in England have the status of foreign currency and are being confidently implemented in the life of the British. For example, in many local establishments and bars, there is an opportunity to pay with electronic money.
The situation with cryptocurrencies in Russia is quite ambiguous. For the first time, the talk about digital money in the country started in 2014, 5 years after the advent of Bitcoin. First, the cryptocurrency faced a number of forbidden sanctions from the Russian government, but now the situation has changed for the better. Since July 1, 2018, a draft law “On digital financial assets” was prepared, which proposed the legalization of cryptocurrency. At the moment, the draft law is fully prepared and is at the stage of waiting.
BITCOIN CASINOS TODAY
Betcoin.ag and Seals with Clubs became ones of the first gambling establishments that gave users the opportunity to bet in the digital currency. The first hybrid online casino in the world is BitStarz. You can make bets both for real money and for cryptocurrency there.
However, not all countries where cryptocurrency is legalized show similar loyalty to online gambling. To obtain permission to conduct gambling activities in such crypto-countries as Germany, the Netherlands, Denmark, Estonia and Finland, the gambling resource must obtain a license from the local regulator. This applies to both foreign and local operators.
In Switzerland, Sweden, and Norway, foreign gambling platforms can perform gambling activities without a license. In turn, local gambling resources must have permission from the local regulator.
Today, the number of Bitcoin casinos is only increasing. The most popular of them are:
Choosing bitcoin casino operators are guided by 3 important reasons:
- financial crypto transactions are not under the control of the state and banks;
- crypto operations are often not taxed;
- As a rule, such activity does not require licensing.
Conventionally, all bitcoin casinos can be divided into 2 groups:
- “Ordinary” online casinos, where digital money is one of the payment methods: personal account replenishment and withdrawal of funds;
- Crypto casinos, which were created with the ability to accept bets and pay out prizes exclusively in cryptocurrency. In this case, digital money is the only available means of payment.
The first group includes usual gambling resources that carry out gambling activities on the basis of a real legal entity and an official license. As a rule, such casinos do not guarantee users anonymity of data.
In the second group, the process of obtaining permission to carry out gambling activities with the introduction of bitcoin as a single means of payment is much more difficult. In this case, consider the following points:
- If gambling activity is permitted on the territory of the selected state;
- whether gambling activities are subject to licensing;
- whether the cryptocurrency has official status on the territory of the selected state.
Satoshi Dice, CloudBet, Vegas Casino are gambling resources that are focused exclusively on Bitcoin as the main means of payment.
The official status of electronic currency is extremely important opening a crypto casino. In order to determine it, you can apply directly to the Ministry of Finance of the country of interest to you.
Nowadays, the chances that bitcoin will become a universally accepted means of payment are very low. This is due to the fact that the cryptocurrency has a decentralized nature, which excludes the intervention of the Central Bank. And what is not under the control of the state will not receive much approval.
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