iGaming regulators, in large part, still have the perception that Bitcoin and cryptocurrencies are for unlawful transactions, so adding it as a payment method or incorporating it into your gambling operation is frowned upon by the stodgy regulators.
It’s a false perception but a perception none the less. When Bitcoin first reached international notoriety, it was a result of the underground buy and sell marketplace The SilkRoad. The SilkRoad was an Amazon type site on the Dark Web where buyers could acquire drugs, guns and all sorts of illegal wares.
The freedom to purchase items online with Bitcoin demonstrated the system could work. Still, being connected to the slippery black-market silk road created a perception that it was for illegal payments but not legitimate transactions.
To clear up some of those misconceptions surrounding Bitcoin and illegal transactions, we hope to demonstrate a few areas where Bitcoin SV can be an iGaming regulator’s best friend.
Public but Private
Putting your proprietary iGaming data on a public blockchain isn’t as unsettling as it sounds; it’s quite the opposite. The nature of the Bitcoin SV blockchain fully encrypts the transactions, and the only people who can access it are the two sides involved in the transaction.
This public but private nature allows iGaming regulators and their operators to share access to the mutually agreed upon data while avoiding the need to trust a 3rd party cloud or file transfer service.
Immutable and Auditable
The immutability of Bitcoin SV means that all the transactions put on the public blockchain are permanent. They can’t be changed forever. There will be a record of a deposit, a withdrawal, and a casino spins, poker hands or sports bets places at what odds.
This data will put your regulator’s mind at ease knowing. A gambling operator can’t cook their books, under-report their GGR, or lie about bets taken at what odds meaning players gain better protection from the threat of a book not paying their winners.
Conversely, if you’re an iGaming operator licences by a less reputable regime, having that permanent record of all your gaming financial and betting transactions on an immutable ledger will protect you from a regulator looking for more than their fair share.
AML is a big deal in some Jurisdictions
Some iGaming regulators are stricter than others; the United Kingdom Gambling Commission is considered the gold standard of regulators. They have some of the most stringent KYC requirements in the world.
One of the benefits for some operators is the cash-like nature of Bitcoin SV, where your players can deposit and withdrawal effortlessly with minimal identifiers, but in jurisdictions like the U.K., using Bitcoin SV can save a company time and money satisfying AML requirements.
Some bitcoin payment processors do their KYC and AML checks, which iGaming operators can use with as much or as little data as required by the regulator.
If your payment processor doesn’t handle KYC and AML, some companies provide those services which will allow an operator to save money and time through outsourcing.
To learn more about KYC and AML services for Bitcoin SV, please consult our resources directory.