Will Bitcoin Service Regulations, Security Protocols Affect the Casino Market?

Bitcoin Exchange

The Bitcoin casino market is on its way to setting new records as more platforms showcase vast improvements in its services. Several casinos, including BitStarz and BTC-Casino.io, have integrated a range of games from a variety of suppliers. Even the Microgaming products are now playable using Bitcoin through Bitcasino.io.

As more developments continue to make this market filled with richer content and value, it is certain that the iGaming industry will begin to notice more the benefits of using the digital currency. After all, the majority of the Bitcoin casino games in store today boast superb graphics, exciting gameplay, and seamless performance.

However, this market boom may be hindered by a series of obstacles that target the very core of Bitcoin betting. And this concerns the primary means for regular online gamblers to acquire Bitcoin, both virtually and manually. If not discontinuing services, some Bitcoin exchanges, ATMs, and wallets will be subjected to local regulations. Add to that the effect of a standardized security protocol.

Licenses are now mandatory for Bitcoin Exchanges, ATM

Although not applying on a global scale, this policy does exist in Canada, specifically in Quebec. Independent from the federal rule observed in the entirety of the country, the Quebec regulatory agency now requires digital currency ATM operators and trading platforms to apply for a license in order to continue operating legally.

With the amendment of the Policy Statement to the Money-Services Business Act to cover Bitcoin businesses within the province, the regulatory agency clarified, however, that this step is not an act of regulating the industry per se.

Along with the licensure is a warning that calls the locals’ attention regarding the use of Bitcoin and other virtual currencies, which are tagged as risky and potential tools for illegal and Ponzi schemes.

Meanwhile, the move is perceived by some experts to be similar with New York’s proposed BitLicense.

CAVIRTEXBitcoin exchanges shut down

The Bitcoin trading market in Canada seems to be in limbo as two of its oldest exchanges suddenly closed. Vault of Satoshi stopped operations early this month, and CAVIRTEX recently bid the marketplace goodbye after over three years in the business.

CAVIRTEX was actively promoting Bitcoin among local consumers for the past years, but the Bitcoin exchange believes that its database has been compromised. This has led the company to cease operations, with the rationale that a tarnished reputation is detrimental to its success.

By March 20, trading services will be stopped, and new deposits will no longer be accepted. Kyle Kemper, vice president of business development, announced that customers can withdraw their remaining Bitcoin and Litecoin funds, but when this will begin is not yet certain.

Proposed security standard to apply to Bitcoin exchanges and wallets

Amid the controversies that surround the market, including the Mt. Gox fiasco, a group of developers and security experts and professionals has come up with a proposal that aims to standardize security among exchanges and wallet providers.

The draft proposal titled the Cryptocurrency Security Standard (CCSS) covers 10 standardized approaches, including storage and usage, security audits, and seed generation to name a few.

Leading its board are the following personalities: Ethereum creator Vitalik Buterin, Bitconsultants founder Michael Perklin, Coindroids cofounder Joshua McDougall, and CryptAcademy founder Russell Verbeeten.

The people behind the proposal believe it will help lay the foundation for the regulators to know how to properly address the evolving market. The proposal is open for community feedback.

What’s in it for the Bitcoin casino market?

Modifying how the convenient sources of the digital currency may not adversely affect the growth of the gambling businesses, but this may reflect in the number of wagers from locations where such service providers are met with new protocols.

Regardless, there are still other means for worldwide players to buy bitcoins. This means continuous access to non-stop entertainment provided by the myriad of Bitcoin casino sites online…until gambling laws concerning Bitcoin use are enacted.