Peter Smith
The United Kingdom (UK) has some of the most stringent gambling regulations in the world, but despite the oversight by the UK Gambling Commission (UKGC), crypto casinos are able to continue to dodge these rules.
Crypto gambling sites are incredibly popular in the UK since they offer privacy, low transaction fees, and fast payouts. Many players prefer fast payout casinos that pay within 24 hours over traditional sites that can take hours or days to process withdrawal transactions. Many of these casinos are licensed, reputable, and trustworthy.
However, there are some nefarious actors in the industry. That’s why it is so important for players to do their research and read reviews and expert recommendations to find reliable and secure crypto casinos.
Governmental Challenges With Money Laundering
The UKGC requires online casinos to adhere to strict anti-money laundering (AML) laws. These penalize operators that don’t comply; however, the grey area when it comes to regulating cryptocurrencies has posed a challenge to the UKGC. Licensed casinos must prove that they are following procedures laid out by the Commission, including AML, Know Your Customer (KYC), and Customer Due Diligence (CDD). There are hundreds of these sites operating in the UK, delivering reliable, safe gambling experiences while offering fast and secure transactions.
Unfortunately, according to a study by Betconix, many unregulated UK crypto casino sites are currently dodging these regulations aimed at safeguarding players, and many players are oblivious if they don’t do their research.
Many of these bad actors are local sites, posing a challenge for the UKGC as they can’t enforce their safeguards on these platforms. The biggest benefits of gambling with crypto are the high levels of anonymity since payments are not linked to a bank and fast transaction speeds; however, it’s exactly these advantages that have made it so difficult to regulate the platforms or detect money laundering activities.
Crypto gambling is no longer a niche activity performed by a handful of tech-savvy gamblers. It is a thriving industry that has captured the attention of criminals who use the platforms for cross-border money laundering, in plain sight.
The UKGC is attempting to address this issue by requiring crypto gambling platforms to perform independent audits and AML risk assessments as part of entry into the market. However, there’s a lack of compliance or willingness from local operators, leaving the UK market without licensed crypto casinos.
The Appeal Of Offshore Crypto Casinos
Due to a lack of licensed UK crypto casinos, many gamblers are turning to offshore sites that are licensed under international authorities, like the Malta Gaming Commission, the Curacao Gaming Control Board, and the GSC Isle of Man. These authorities offer low licensing fees and a progressive approach to blockchain and cryptocurrency, making it easier for casinos to operate within a clear legal framework.
While the UK is struggling to establish a transparent and safe crypto gambling situation, other authorities and jurisdictions have had success, offering gamblers safe alternatives compared to the criminal platforms in the UK.
Peter Smith
