Betting with Cryptocurrencies
The betting industry — once again — is leading in consumer centric solutions in FinTech innovation. In the first Internet wave of 1999, more than half of PayPal’s transactions where online betting transactions. Until eBay acquired the company in 2002 and stopped betting transactions completely.
Now, once again, during the FinTech 2.0 cryptocurrency innovation, bitcoin has been fast adopted by the online betting Industry. In fact it is estimated that the majority of the transactions of the most active bitcoin wallets are by consumers in the online betting industry.
It is no coincidence that there is no less than 121 articles on coindesk relevant to the sector. Including a prediction by Jon Matonis . Moreover, Roger Ver has commented on the synergy of “bitcoin as the ideal gaming chip” and how probably fair betting is now a reality.
It seems that betting with bitcoin is one of the customer centric “killer apps” of cryptocurrencies. They are hundreds of sites operating. Dedicated online payment providers to this new niche of the industry have emerged. New players are preparing to enter with new P2P gaming models. The mass market adoption is clearly connected to the relevant regulation. It is fundamental that Anti Money Laundering and Combating Financial Terrorism issues are clarified and operators are licensed by one of the leading jurisdictions that issue online betting licenses like Gibraltar, Malta, Alderney and the Isle of Man. All have publicly declared that they have teams which are researching the issue.
The race is on between jurisdictions, on which will be first to issue a bitcoin betting license. The Isle of Man has announced it is preparing to pass a Digital Currency Regulatory Framework and has been dubbed “Crypto Valley” island. Bets are on. Which jurisdiction will be first?
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