Australia and casino licensing have always been a cause for governmental debate. However, all the existing rules don’t target the Aussie residents themselves, which is why many operators still offer their services to AU players from offshore. One of the best ways to gamble is using crypto since the banking system of Australia isn’t involved in any transaction.
In light of these considerations, the usage of cryptos is completely legal and a gambling reviewer like OnlineCasinoAussie.com has lists of best aussie online casinos that accept crypto transactions in the country. The only limitation is that the approval of cryptocurrency exchanges has come with a few strict regulations that ensure that people aren’t laundering money in Australia. Currently, the Northern Territory Racing Commission is looking at a cautious proposal to integrate crypto into the regulated industry. Below is the regulatory landscape once crypto betting is included with its gambling licensees in the NT.
What to Expect
Without any doubt, this seems to signal a big change in the NT’s state regulators since almost five years ago it told gambling servers to stay away from cryptos. But here is how the regulatory landscape can look once cryptocurrency wagering has been permitted in the stance.
Betting Using Cryptocurrency
At the moment, the process of depositing in a gambling website using cryptos may seem complicated at first. And the main reason for that is moving crypto from a personal wallet to an online casino account. Both their wallet and the casino account connect with each other for gambling.
With that said, if the potential model goes to plan in the NT, chances are that Aussie members need to place fiat and crypto wagers separately on the same operator, as the two financial tools won’t be interchangeable with each other anymore. To put it differently, what they are looking at is betting using crypto and not exchanging into fiat equivalent.
Solving some Challenges for Regulators
Back in 2019, the International Association of Gaming Regulators published its Gambling Regulation Survey at https://iclg.com/news/10575-cryptocurrency-gambling-among-challenges-for-regulators-says-iagr-report. According to this document, one of the most pressing problems for regulators is a cryptocurrency exchange. A total of 77% of jurisdictions fought to keep crime out of concern for money laundering.
The main reason why exchanges must comply with all of these regulations is to make sure that any money that enters Australia via the exchange isn’t being funneled to money laundering or to avoid paying taxes Golden Crown Casino. Julian Hoskins, a principal at Aus gambling law and regulatory firm Senet, noted that stringent identification requirements have also been proposed to keep in line with Anti-Money Laundering regulations. As such, Australians will most likely have their crypto wallet addresses verified. During any withdrawal, all the winnings will be back to the same address that made the initial deposit.
Pondering the Tax Issue
Hoskins noted that he was unable to offer any insight into the tax issues of using cryptocurrency betting. The lawyer also added that he did not know how the implications would be treated and that the NT Racing Commission is most likely still pondering the matter.
Setting Crypto Deposit Limits
In addition, Julian Hoskins outlined that the NTRC has recommended monthly crypto deposit limits worth 2,000 AUD for the first 12 months, with a max wager of 5,000 AUD per month accordingly. That way, we think many Aussies are able to gamble responsibly and enjoy a flutter without losing control, as per the common issue.
The gambling-industry lawyer also explained that local gambling companies are legally required to maintain crypto wallets that hold enough funds to fully secure customer wager amounts.
Following the Model in Other States
Last but not least, the principal at Australian gambling law added that if this model went according to plan in the NT, other state regulators would likely follow the possibility of including cryptocurrency wagering with its gambling licensees into the regulated industry.
He went on to say that by the popularity of crypto, he imagined that this would be pursued as an alternative to fiat. “I think it has the potential to be quite material”, Hoskins concluded.