The Isle of Man’s Gambling Supervision Commission (GSC) and Treasury have approved changes to the island’s gambling regulation that allow virtual currencies like Bitcoin to be accepted as cash, according to a report from the GSC’s Mark Rutherford, deputy chief executive.
The regulation, called the Gambling Regulation Package 2016, includes other changes, such as expanding voluntary gambling controls that an operator can offer players.
The suggested changes remain subject to approval by government drafters, the report noted, although any deviations will be in wording rather than intent. Cryptocurrencies Are Property
The regulation classifies cryptocurrencies as property rather than currency.
An operator will be able to accept virtual currencies subject to regulatory safeguards on the safety of the way value is stored and on the protection of value. The GSC also requires an operator’s cryptocurrency exchange to have a reporting requirement to a creditable financial intelligence unit.
Licensees will be allowed to open accounts for players who use convertible virtual currencies. A money deposit is required to open an account using a credit card, debit card or other means the commissioners approve.
GSC has proposed including a change in the phrase “deposit of money” to include the words: “a deposit of money or the deposit of something which has a value in money or money’s worth” where the format of the money’s worth still requires the GSC’s approval. Sublicensee Rights Clarified
Another change in the regulation is to clarify that sub-licensees can use all parts of a full licensee’s platform.One function of gambling companies is to capture and process payment details, categorize AML/CFT risk and capture data for purposes of commercial marketing. The non-gaming functions are known as the “back office” and often are more extensive than the games they support.An island-based CSP has approached the GSC to license a model whereby a licensee […]
