The United Kingdom has some of the toughest anti-money laundering (AML) legislation in the gaming industry. But with all that strict regulation, the number of crypto-based casinos still manages to find ways to operate under the radar, and new challenges are being presented to regulators as player safety concerns continue to rise.
As opposed to regulated operators who must comply with rigorous Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols. Unregulated crypto casinos go out of their way to avoid such procedures. This wide open door leaves room for anonymity. Where funds can transfer quickly and undetected—further enhancing the prospects of criminal activities going undetected.
One of the key reasons for the problem is the fact that cryptocurrency is borderless. Off-shore operators are able to function in the UK market without entering the UK at all. Direct cryptocurrency deposits are illegal under UK law, but some websites sidestep the restrictions by using indirect payment methods, and doing transactions that appear good but outside the legal system the participants believed they were accepting.
The government of the UK has said firmly that any crypto casino operator that would like to operate its business in the market needs to undergo a complete compliance audit. None of them have managed to do so yet. As a result, licensed and regulated crypto casino options are still nonexistent in the UK, which is something that the offshore entities do not hesitate to capitalize on.
Why It Matters
- Regulatory Loopholes – Rapidly changing tech such as blockchain may get ahead of current laws, and it will be difficult for regulators to keep pace.
- Challenges in Enforcement – Decentralized platforms are spread across several jurisdictions, and hence enforcement becomes complicated.
- Risks for Players – Unregulated, players become more susceptible to fraud, cheating, and loss of money.
For players who play for openness and safety. It is critical to play on a platform that focuses on compliance, security, and fairness. At wolf7pay, rigorous verification and responsible gaming procedures ensure that players can enjoy a safe and secure experience. Brought to them by licensed, well-capitalized operators, absent the threats of mysterious offshore operators.