On 11 June 2024, Australia banned the use of cryptocurrencies in online gambling. It is part of a plan from regulators aiming to prevent Australians from “gambling away money they do not have.”
Along with cryptocurrencies, credit cards linked to cryptocurrency wallets have also been restricted.
Cryptocurrencies have become one of the most common means of payment for gambling. Hence, we may see more announcements from Australia on gambling prevention in the near future.
Australia’s Government Cracking Down On Crypto Gambling
Australia Prohibits Online Gambling With Credit Cards And Crypto!
The new regulations align with similar legislation regarding land-based casinos! pic.twitter.com/OSUNS7lhYA
— Crypto Gambling News (@cryptogamblingx) June 11, 2024
Australia’s Communications minister, Michelle Rowland, was quoted saying that “Australians should not be gambling with money they do not have.” She went on to say that the move is a means to mitigate the “harm” brought about by the current government over the past few years.
Wagers placed in crypto jumped 83% from 2022 to 2023 according to a report by SOFTSWISS. Australia has been a home to many online casinos, with a large portion of them accepting digital assets as payment.
A 2019 study by ‘Gambling Research Australia’ found that 30.7% of gamblers in Australia preferred to use crypto for online gambling activities.
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Independent Bodies Weighing In On New Laws
Kai Cantwell, who oversees Responsible Wagering Australia, an independent body monitoring the Australian gambling market, has also spoken out. He has urged regulators to extend the ban to exempted forms of gambling. Kai believes that measures need to be consistent across all areas of gambling or it could push Australians towards “less-regulated types of gambling”.
The new law goes hand-in-hand with existing measures, particularly in physical casinos. Credit cards are already banned in real-world casinos as of 2023. Initially introduced in 2023, the new rules were presented, as an amendment to the Interactive Gambling Act 2001. Related platforms were given a six-month transition period to comply with the new ruleset. Failure to comply can result in fines of up to $234,750 Australian Dollars ($155,00 USD).
Increased Regulatory Scrutiny Amid Crypto Boom
The taxation office in Australia has asked #cryptocurrency exchanges to provide personal data and transaction details of 1.2 million accounts.
This is related to users who did not pay their capital gains taxes.
You know the government is serious… pic.twitter.com/LtRgW5pkUy
— Subjective Views (@subjectiveviews) May 21, 2024
Australian regulators have also started to focus on the ever-growing cryptocurrency industry. In May, Australia’s tax office issued a notice to cryptocurrency exchanges. In the notice, the tax office demanded details of up to 1.2 million user accounts in a bid to combat tax evasion.
Meanwhile, the nation’s securities regulator has been cracking down on crypto companies that it feels have been offering unregistered securities. The move follows the US Securities and Exchange Commission (SEC)’s actions that have been leading the way in crypto regulation.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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