Bitcoin Regulation Forces Primedice to Move Operations

By May 7, 2015Bitcoin Business
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Bitcoin Regulation Forces Primedice to Move Operations

Following the potentially stricter bitcoin regulation environment in the United States and Australia, bitcoin gambling company Primedice decided to move its operations Russia and China. The company announced last week that it will stop serving customers in the U.S. and Australia and would focus on expanding its market share in its second and third largest markets.

“We’ve had to give up nearly 50% of our client base but with such an uncertain legal landscape surrounding bitcoin gambling [in the US] we feel this is better off in the long run,” according to a spokesperson from Primedice. “Australia only accounted for a little under 5% of our client base so blocking it was an easy decision in terms of mitigating unnecessary risk.”

Bitcoin Regulation On Online Gambling

The New York Department of Financial Services confirmed that their BitLicense is nearing finalization, and this bitcoin regulation would wind up restricting cryptocurrency activity in the state and country. Primedice believes that they would nots suffer any regulatory problems in China and Russia, although the latter has announced a complete ban on bitcoin-related activity recently.

Prior to this, a number of online gambling sites have closed their operations in the US as owners expect tighter bitcoin regulation. Last October, SatoshiBet prevented US customers from accessing its gambling platform. It also highlighted the uncertain future of online gambling regulation in the US and legal problems that could result from continuing their operations there.

Primedice has been able to process a total of $158.8m last year, resulting in a daily average of $435,068, based on the research conducted by BitPay. The company has surpassed 5 billion individual bets since its inception in May 2013, as activity in the gambling site accounted for a huge chunk of daily bitcoin transactions. For the first few weeks of the year, Primedice’s activity was roughly equal to BitPay’s daily transactional volume over the past year.

“We’ve had to give up nearly 50% of our client base but with such an uncertain legal landscape surrounding […]

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