Gambling Reform, Australia Prohibits Crypto and Credit Cards

New Australian Law For Gambling: Crypto and Credit Cards Prohibited

The regulatory authorities have protected its citizens from such financial losses by putting in place a ban on Crypto and Credit cards for Online Gambling. Failure by companies to comply with the new regulations could lead to severe penalties in the form of hefty fines.

What's the News

On 11th June Australia put a ban on the usage of digital currencies and credit cards for online gambling. The new rules include credit cards associated with the digital wallet and cryptocurrencies such as Bitcoins. The Australian government stated that non-compliance could impose penalties of up to 234,750 Australian dollars ($155,000).

This ban has been set to ensure that the laws governing the online betting industry are similar to the laws that govern the traditional gambling industry. However, payments for online lotteries are not allowed through the card even if lotteries can be paid through credit cards. The ban is part of a larger process aimed at maintaining the online gambling processes and their outcomes comparable and fair across the industry.

The reasons that make Australia ban Crypto and Credit Cards

The primary rational for this ban is the prevention of the monetary losses that people may encounter when gambling. Such restrictions like a ban on credit cards and digital currencies are likely to help the government in avoiding situations where people spend money they do not possess. This measure is particularly oriented towards the prevention of people getting into debt as a result of gambling.

Kai Cantwell, an independent organization for Australian-licensed gambling service providers called Responsible Wagering Australia, agrees with the move. He thinks that it will enable individuals to better control their gambling activities.

Cantwell also called for the government to expand that ban to other kinds of gambling that are still legal today. He expressed that individuals might shift to less-regulated gambling activities increasing their risk of harm.

The gambling industry was given a six-month transition period to adjust to these new rules, with the full ban taking effect on June 11. The Australian Communications and Media Authority (ACMA) has been empowered to enforce these restrictions, ensuring compliance and protecting consumers.

Crypto And Gambling

Crypto enthusiasts engage in gambling on a wide array of topics, ranging from the latest memecoins to significant regulatory outcomes like the approval of spot Bitcoin exchange-traded funds (ETFs). For instance, on January 11, users of the betting platform Polymarket wagered $12 million on the ETF approval outcomes. Beyond the Bitcoin ETF decisions in the US, crypto gamblers also placed bets on the approval of spot Ether ETFs. 

In March, these wagers totaled $2.4 million, with the outcome decided when the ETF received official approval on May 23. While some crypto users make serious wagers, they also place more lighthearted bets, such as predicting the number of tweets billionaire Elon Musk will make or forecasting the temperature changes in May.

Conclusion

As per CoinGabbar research, Australia's decision to ban cryptocurrencies and credit cards for online gambling is a significant step towards protecting its citizens from financial harm. By implementing these new regulations, the government aims to provide a safer gambling environment and reduce the risk of individuals accruing debt. As the gambling landscape evolves these measures will help ensure that Australians can engage in gambling activities responsibly and safely.

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