Crypto gaming is a relatively new phenomenon, and as such, not all countries have official regulations or laws surrounding the practice. However, governments the world over are beginning to create legislation and rules on how cryptocurrency can be used and traded in the gaming industry.
Not all countries have licensing requirements regarding cryptocurrency, but many do have regulatory bodies for this sole purpose. The United States, the United Kingdom, Canada, Japan, the Philippines, and Australia are all examples of countries that require crypto licenses.
There are different types of crypto licenses, including money transmitter, money services business, and BitLicense. Each of these affords businesses in the gaming world access to the cryptocurrency sector. However, not every country or state requires a business to have one of these licenses. For example, crypto companies in Florida are not required to have a money transmitter license, thereby removing a hurdle to operating in, and benefitting from, the burgeoning digital currency economy.
The cryptocurrency landscape is ever-evolving, which makes the need for regulations paramount. It will allow crypto gaming to take place in a way that is secure and safe for users, and prevent things like fraud or unlicensed operating to take place.
In the US, crypto gaming or gambling is legalized. The majority of states allow Bitcoin casinos and gaming services to operate online, making them easily accessible to players. In certain states, residents can bet at offshore casinos that support the inclusion of US-based users.
Some of the states where online crypto gaming is most popular and accessible include Pennsylvania, New Jersey, Connecticut, Delaware, Nevada, West Virginia, and Michigan. A number of crypto games that are legal for US citizens in these states to play are cited in cryptonews.com, the majority of which revolve around using digital assets to place online bets and take part in casino games, much like you would at a fiat currency online casino.
In the United Kingdom, the Financial Conduct Authority (FCA) is in charge of creating crypto regulations. At the moment, all cryptocurrency is subject to taxation and AML and CFT protections. This means that crypto game operators must monitor all transactions and report any suspicious activity in order to avoid money laundering or terrorism funding. For a crypto gaming business to accept and trade digital assets, it must be able to prove that it is behaving in a socially responsible way.
Despite these rules, there are no laws specific to the use of cryptocurrency in the UK, which can make regulations confusing. Crypto investors are still required to pay capital gains tax on any profits, but taxability on crypto in general is dependent on the specifics of the trading undertaken and the parties involved.
Canada has interesting regulations when it comes to digital currency gaming. Online gambling is outlawed in the majority of Canadian provinces, but this does not necessarily include crypto gaming. The most common way that residents take part in crypto gaming is through the use of foreign websites, which is permitted by the CA government.