The Australian government has banned the use of cryptocurrencies and credit cards for online gambling.
As reported by The Canberra Times, the new regulations, effective June 11, prohibit the use of digital currencies like Bitcoin, credit cards linked to digital wallets, and other new forms of credit for online betting activities.
The gambling industry was given six months to adapt to the new regulations. With the ban now in place, Australia’s communications watchdog has been tasked with overseeing compliance and enforcing the new rules.
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The prohibition aligns with Australia’s existing laws on land-based gambling; however, exceptions remain, such as the allowance of credit card payments for online lotteries.
Companies that don’t adhere to these new regulations could face fines of up to 234,750 Australian dollars (around $155,000).
Kai Cantwell, CEO of Responsible Wagering Australia, an organization representing licensed wagering service providers, has endorsed the government’s decision:
This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behaviour.
He also called for the government to consider extending the ban to include all forms of gambling, warning that inconsistent regulations could drive gamblers to less-regulated and potentially more harmful options.
Cryptocurrencies have been widely used for various forms of gambling, from betting on the latest crypto trends to speculating on regulatory decisions such as the approval of spot Bitcoin or Ether exchange-traded funds (ETFs). Crypto users also engage in more light-hearted gambling activities, for example, predicting monthly temperature changes.
This regulatory shift marks a step toward better control of online gambling and protecting consumers from potential financial pitfalls.
In other news related to crypto regulation in Australia, the country’s taxation office has mandated that crypto exchanges submit personal details of over 1.2 million accounts to reinforce tax compliance.
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