The UKGC (United Kingdom Gambling Commission) cleared its position on how crypto-currencies can be used in gambling. In the updated version of rules for gambling released in July, the regulator describes how the licensees can work with the so called ‘money equivalents’ (the term is very similar to ‘money substitutes’, but in fact is carries a different meaning.) The shift in the policy of UKGC towards crypto-currencies was quite radical. The more surprising is the fact that virtually no news agencies discussed it and that there was no reaction from the gamblers’ community. Till the day, only the Esports Observer, cPaymentMethods.com and the gambling providers reacted to the news. This may partially be because the complete text of the new decree is still not available. UKGC does advice to protect consumers and reduce financial crime such as money laundering associated with crypto-currencies. The report states: “As part of their internal controls, the licensees should implement appropriate policies and procedures relating to the use of real money and money equivalents (such as bank notes, checks, debit cards and crypto-currencies) by their clients, developed to minimize the risks of such crimes as money laundering, to avoid illegal issuance of loans to customers and to provide assurance that of compliance of their gambling license.” The updating plan will come into force starting October 31, 2016. It is noteworthy that the comments came just a month after UKGC brought the digital currencies into “area of close attention” in its latest annual report. One could say that UKGC announced its will to continue investigating whether or not crypto-currencies fall into its sphere of regulation. Crypto-currencies in other countries Meanwhile the banks of Japan announced the creation of a new blockchain consortium. They are going to do that with help of the well-known Ripple company. […]
