Australia Implements Ban on Crypto and Credit Cards for Online Gambling
Summary:
The Australian government has enacted a ban on using cryptocurrency and credit cards for online gambling. The prohibition came into effect on June 11, with businesses non-compliant to these new financial regulations risking fines up to around $155,000. The move aims to safeguard Australian citizens from overspending, and is aligned with the nation's existing legal framework for land-based gambling. The ban, however, has exceptions such as online lottery payments that still allow credit card use. Experts approve of the measure for promoting responsible gambling, but also call for extending the ban to other forms of gambling to avert risky betting behaviors.
In measures aimed at preventing its populace from reckless spending, the Australian government has imposed a restriction on the usage of crypto and credit cards for web-based betting. A news announcement made on June 11th, as reported by The Canberra Times, indicated that Australia has initiated a barring of digital currencies and credit cards for online gambling sites. The government has warned of hefty penalties of as much as 234,750 Australian dollars, or around $155,000, for businesses that dare to defy these new regulations. Such regulations encompass credit cards linked to digital wallets, cryptocurrencies such as Bitcoin, and emerging credit forms.
Australia's ban on crypto use in gambling
This latest legislation for internet betting coincides with the existing Australian laws governing physical gambling venues. Nonetheless, there are certain exceptions like payments for online lottery, which continue to permit the use of credit cards. According to Kai Cantwell, the CEO of Responsible Wagering Australia - a neutral institution for gambling services authorized in Australia - this step simplifies the process of individuals self-regulating. He admiringly stated how this is a significant move in safeguarding customers, making it more plausible for people to control their own betting habits. Cantwell also advocated for the government to extend the ban to include other types of gambling not currently covered. He warns that unless protective measures are uniformly implemented across all gambling avenues, members of the public might gravitate towards less regulated types of betting which place them at greater risk.
Thanks to a policy of leniency, the betting sector got a grace period of six months to adapt before the total ban came into effect on June 11. The nation's communications watchdog has been charged with the enforcement of these fresh restrictions.
Crypto and gambling
Crypto users are renowned for gambling on a myriad of entities, from the latest memecoins to significant regulatory rulings like the authorizations for spot Bitcoin ETFs. On January 11, Polymarket, a betting platform, saw users betting $12 million on the result of the ETF approvals. Apart from the U.S. Spot Bitcoin ETF decision, crypto users also placed bets on the decision for spot Ether ETFs. In March, bets placed on the ETH ETF decision amounted to $2.4 million. The bet was resolved when the ETF got official authorization on May 23. While making serious decisions, it is noteworthy that crypto users also place pointless bets, like predicting the frequency of billionaire Elon Musk's posts or guessing May's temperature rise.
Published At
6/11/2024 10:40:53 AM
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