The proliferation of gaming operations that use digital currency has caught the attention of the authorities who for years have seem to have just played the role of an observer and allowed bitcoins to be used in online gambling.
This time, the UK Gambling Commission (UKGC) is taking action and decided it has seen enough.
The UKGC has issued a warning to gaming operators that they can be liable for operating without a permit or license, a big no-no for the commission who makes sure everything is legit and on equal footing.
The UKGC is making it clear that whether it is real money or not, gaming operators still fall under the commission’s area of responsibility and that all companies that run gambling hubs especially to UK citizens, must get a license regardless of the currency in which dealings are carried out.
A number of gaming operators has been sent letters by the UKGC, informing them about the implementing rules that are to be followed. These rules, as stated in the clarificatory letter, cover bitcoins no matter if these currencies are not regulated by any government or financing institution.
These gaming operators, the UKGC disclosed, have been offering monetary prizes otherwise known as “money’s worth” to the gamblers. The digital currency sites are categorized as “money’s worth.”
According to Jenny Williams, chief executive officer of UKGC: They wrote the gaming operators because they were either advertising gambling illegally or illegally offering gambling products to consumers, or both.”
Williams further noted that the UKGC neither encourages or prohibits virtual money; “we are interested only in guaranteeing the proper regulation of gambling products in Britain.”
On Sales tax money laundering
Authorities in Britain in 2013 came up with a proposal that online cryptocurrency establishments would be exempt from licensing and regulation as bitcoin does not constitute legal tender.
However, tax authorities did not
Originally appeared at: http://www.fxpips.com/bitcoin-gambling-uk-gambling-commission-runs-after-unlicensed-gaming-operators/
Bitcoin Gambling: UK Gambling Commission Runs After Unlicensed Gaming … is a story from: BitcoinWarrior.net