Bitcoins and the MGA
Bitcoins have been in the news a lot recently, with a spotlight on theft through hacking, the illicit drug and firearms trade that is being facilitated by this online currency as well as article around who invented the currency.
Less reported on, however are the uses and popularity of the Bitcoin currency. Currently businesses in the US and the UK have been a lot more open to making use of this currency, with even the American company, Dunkin’ Doughnuts publicly supporting the currency.
What Are Bitcoins?
To use the textbook definition, Bitcoin is a form of unregulated digital currency. It has become a form of online payment, but it first gained widespread notoriety when it was reported as the currency of choice for traders on the online market place called Silk Road. This market place has quite a sinister image as it is used to trade both illegal drugs as well as firearms and other illegal commodities.
Why The Reluctance To Adopt Crypto Currency?
One of the biggest fears of governments and business is that one word, unregulated. Bitcoins are not tied to a specific commodity in order to generate their theoretical value. For instance the value of the Dollar is tied to the strength of the American economy, their credit and debit records, the gold reserves that back up the currency and a variety of other factors. Bitcoins on the other hand are quite volatile and can be vulnerable to a variety of online attacks, hacks and fluctuations.
What Is The Current Situation?
There have been talks between the Malta Gaming Authority, the Central Bank of Malta, the Malta Financial Service Authority and the Financial Intelligence Analysis Unit with regards to casinos accepting this cryptocurrency. Yet, to date there has been no official accepting of Bitcoins as legal tender.
There have been talks of 2016 being the year that Bitcoin will officially be recognised, but so far the MGA is betting on a wait and see approach. As long as businesses follow the applicable tax rules, Bitcoin can be used for transactions, but few big businesses want to become an early adopter too soon.
For the MGA, the acceptance of Bitcoins at their licensed online casino is for now, not about to happen. It is interesting to note however, that they haven’t disregarded the fact that in the future, this cryptocurrency might be one that will be added to the already extensive lists of banking options on offer.