Last year, Isle of Man has taken steps towards making some changes in its gambling regulation. Up to date, the self-governing crown dependency allows gamblers to use Bitcoin and other cryptocyrrencies as an equivalent to regular cash.
In other worlds, the gambling operators and casinos that currently are run on the territory of Isle of Man and are regulated by the local Gambling Supervision Commission (GSC) already accept various virtual currencies, including bitcoins and litecoins. In addition, customers of locally-regulated casinos are given the opportunity to maintain the account balances in whatever cryptocurrency they like.
Isle of Man have gone even further in making the situation for customers as favourable as it could. Thanks to the changes in the territory’s gambling regulation, casinos that have been dealing with Bitcoin, are now provided with the chance to file license application to the Gambling Supervision Commission. This step is expected to considerably improve the situation in the area and ensure a regulative umbrella for the gambling companies and operators that used to perform in the grey economic area.
Bitcoin Gambling Approval in Isle of Man
At the spring of 2016, the Deputy Chief Executive Officer of the Gambling Supervision Commission Mark Rutherford reported that the GSC of the Isle of Man and the territory’s Treasury had approved changes to the island’s gambling regulation that allowed virtual currencies to be accepted as equivalent to cash. The regulation is called Gambling Regulation Package 2016. It does not only include the acceptance of Bitcoin and other virtual currencies, but also incorporated other changes, like expanding the voluntary gambling controls that could be offered to players by gambling operators.
Of course, all the suggested alterations in the territory’s gambling regulation had been subjected to the competent authority’s approval.
Bitcoin and Other Cryptocurrencies
As mentioned above, the Gambling Regulation Package 2016 made Bitcoin and other virtual currencies as equivalent to regular cash. However, under the provisions on the new gambling regulation in Isle of Man, cryptocurrencies are classified as property rather than currency.
The regulation made it possible for gambling operators in the self-governing crown dependency to accept virtual currencies in a safe and risk-free manner. In order to guarantee that, the Gambling Supervision Commission imposed a reporting requirement on the operators’ cryptocurrency exchange.
The licensed operators would get the opportunity to open accounts for their players who use convertible virtual currencies. In order for such an account to be created, a money deposit via credit/debit card or other means is required.
Possible Consequences
The changes in the gambling regulation in terms of Bitcoin and the rest of the cryptocurrencies are considered to be used by the local government in order to help the latter fill in the gap in its gambling regulations. Undoubtedly, this is a significant change, which comes at a time when the government of Isle of Man no longer wants to delay the economic development and technology innovations in the area.
In addition, some experts and market analysts have shared that Isle of Man is most likely aimed at becoming the key blockchain destination of Europe. According to them, this is obvious thanks to the recent policy of the local government to boost its attractiveness for both licensed gambling operators and their customers in terms of bitcoin and other cryptocurrencies usage.
In spite of the fact that the local competent authorities claim that the changes and new rules incorporated are still experimental and would take a lot of time for the territory to present virtual currencies as an inseparable part of its modern financial system, the deed is done and there is no turning back for the Isle of Man. It is still to be determined whether this step’s consequences would be good or bad, as such a blockchain may highlight the weak points of the current financial system, especially when safety, fairness and transparency are involved.
Over the past few years, such digital ledgers have already been reported to have caused problems and disturbances in a number of industries. However, the fact that the technology is expected to be improved in a few years should not be underestimated. When it comes to the Isle of Man, the territory is also projected as a future attractive destination to many companies operating in various sectors, including gambling, especially considering the environment in the UK after the BREXIT.
- Author
Daniel Williams
