Online betting with cryptocurrencies and credit card is banned in Australia
Australia has taken another step towards protecting its citizens from the impact of online betting. As of June 11, the use of cryptocurrencies and credit cards for internet gambling is banned in the country. The decision is part of an ongoing effort to prevent people from spending money they don’t have and falling into financial trouble.
The ban, announced by The Canberra Times, is not only restricted to traditional credit cards, but also includes popular cryptocurrencies such as Bitcoin and new forms of credit linked to digital wallets. Betting companies that fail to comply with the new rules could face severe fines, reaching A$234,750 (approximately $155,000).
Australia tries to face problems with lack of control in betting
This change aligns the rules for online betting with those already in place for physical betting. However, there are exceptions, such as online lottery payments, that still allow the use of credit cards.
Kai Cantwell, CEO of Responsible Wagering Australia, an independent organization representing licensed betting service providers, believes that these measures will facilitate self-control among bettors. According to Cantwell, the move is important to protect customers by helping them maintain control over their betting behavior.
In addition, Cantwell suggested that the government should extend the ban to all forms of betting, with no exceptions. He argues that if protective measures are not consistent, players may migrate to less regulated types of games where they are at greater risk of harm. The concern is that players may migrate to foreign betting platforms, which are not subject to the same stringent regulations as Australia.
The betting industry was given a six-month transition period to adapt to the new rules, which came into effect on June 11. Australia’s communications watchdog will enforce these new restrictions.
Has betting of any kind become a problem?
The use of cryptocurrencies in betting has been a common practice among enthusiasts of this type of currency. They bet on a wide variety of events, from the approval of spot Bitcoin exchange-traded funds (ETFs) to the results of important regulatory decisions. For example, in January, users of the Polymarket betting platform bet $12 million on the outcome of the approval of a spot Bitcoin ETF in the United States.
In addition, crypto users also bet on less serious events. This includes, for example, the number of times billionaire Elon Musk will post on his social media or predictions about temperature rises in certain months. In March, bets on the decision of a spot Ether ETF reached $2.4 million. The bet was settled when the ETF received official approval on May 23.
Gambling experts highlight that migrating to unregulated platforms can increase the risks of fraud and exploitation of players. Foreign platforms often operate without the necessary oversight, which can result in increased exposure to fraudulent practices and financial exploitation.