BetVIP, the first fully licensed Bitcoin sportsbook, dropped Coinbase as its payment processor due to conflicting terms concerning Bitcoin gambling.
BetVIP severed its ties with the Bitcoin service provider for prohibiting all gambling-related activities and transactions.
Coinbase, which initially served as the Bitcoin payment processor for the Bitcoin casino and sportsbook, apparently decided to cease providing services to clients belonging to the online gambling industry, according to a BetVIP spokesperson.
Nick Tomaino, Coinbase business development manager, however, denied such claims and was quoted saying:
“We haven’t explicitly dropped gambling business and gambling is actually a growth opportunity that we are excited about in the future as the regulatory landscape becomes more clear.”
He added that one of their missions is to provide their clients—consumers, merchants, and developers alike—with convenience when it comes to using Bitcoin payments.
Who’s telling the truth?
Tomaino’s statement, however, seems to contradict the actions taken by Coinbase in the past months.
Based on online reports narrated by actual users, they had their account suspended and blocked by Coinbase, and were advised to withdraw their remaining balance from their wallets after making transactions with Bitcoin betting sites.
The message the customers received reasoned transactions connected to online gambling. This had caused other players to use Coinbase services other than to directly place bets on Bitcoin casino games.
Cubits Pay to fill the shoes
Replacing Coinbase as the payment processor for BetVIP is Cubits through its services tailored for merchants. Cubits Pay is the company’s system designed to cater to businesses that aim to expand their market through the acceptance of Bitcoin.
This becomes one of the best options for payment processors since its solutions are developed for all types of local and international businesses, and it protects merchants from price volatility by immediately converting Bitcoin payments into local currencies.
BetVIP, a Curacao-licensed betting platform, will now promote transparent and legitimate Bitcoin gambling through the services provided by Cubits.