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Australia cuts off cryptocurrencies and credit cards for online gambling
In a significant move aimed at curbing the financial risks associated with online betting, the Australian government has officially banned the use of cryptocurrencies and credit cards on digital gaming platforms.
This measure, effective June 11, was reported by the Canberra Times and extends to sources of credit linked to digital wallets, such as Bitcoin and other emerging forms of credit.
The new regulations align with traditional casinos, excluding online lotteries
The new regulations imposed are designed to align with existing rules for land-based casinos, although they retain exceptions for some transactions such as online lottery payouts. The decision comes amid concerns about easy access to excessive credit and the potential for substantial financial losses among gamblers.
The government has established severe penalties for those who do not comply with the rules, with fines of up to 234,750 Australian dollars (about $155,000). This implementation of the policy follows a six-month transition period given to the gambling industry to adapt to the new laws, now strictly enforced by the country’s communications regulator.
Australia cracks down on online gambling with cryptocurrencies
Kai Cantwell, CEO of Responsible Wagering Australia, an independent body representing Australian-licensed gambling service providers, supports the government initiative. Cantwell highlighted the importance of such measures in helping people maintain control over their gaming habits.
He also called for these restrictions to be extended to include all forms of gambling to prevent gamblers from seeking less regulated and potentially more harmful betting environments.
The intersection between cryptocurrency and gambling has been notable, not only in conventional betting arenas but also in speculative activities in prediction markets.
For example, on January 11, Polymarket users placed bets totaling $12 million on whether the U.S. Securities and Exchange Commission (SEC) would approve a spot Bitcoin exchange-traded fund (ETF) by Mid January.
These bets, wagering on the Polygon-based decentralized predictions market, highlighted the speculative nature of cryptocurrency users who engage in betting on regulatory outcomes and other high-risk decisions.
Cryptocurrencies and Gambling: A Speculative Intersection
The cryptocurrency betting frenzy reached its peak just as the SEC prepared to announce its decision on ETFs. By January 10, trading volumes on Polymarket surpassed those on OpenSea, a leading non-fungible token marketplace, with $5.7 million versus $3.9 million.
Bets were settled in favor of those guessing “YES” as the SEC approved the trading and listing of 11 spot Bitcoin ETFs the following day.
Despite the official verdict, some participants disputed the outcome based on semantic differences in the SEC’s terminology, arguing that the bet should continue since the SEC referred to “exchange-traded products” rather than specifically naming them ETFs.
In addition to Bitcoin, crypto users have also been betting on the potential approval of Ether spot ETFs in the United States. With over $2.4 million at stake, approximately 81% of bets were pessimistic that a spot Ether ETF would be approved before the May deadline.
The bets, which also took place on Polymarket, were settled when the ETF was officially sanctioned on May 23.
These gambling activities reflect the broader trend of cryptocurrency enthusiasts to engage in both consequential financial predictions and lighter, more whimsical predictions, such as guessing the frequency of Elon Musk’s social media posts or the magnitude of stock increases. temperature.
This pattern of behavior highlights the volatile nature of cryptocurrency use in gambling – ranging from serious financial moves to trivial bets – and the need for stringent regulations such as those implemented by Australia.
The government’s proactive stance aims not only to protect consumers but also to prevent the potential financial disaster caused by uncontrolled online gambling.