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In a significant move to safeguard its citizens from financial risks, the Australian government has enacted a ban on using cryptocurrencies and credit cards for online gambling. This new regulation, announced on June 11, carries stringent penalties for non-compliance, with fines reaching up to 234,750 Australian dollars (approximately $155,000).
According to a report by The Canberra Times, the ban covers all forms of digital currency and credit cards linked to digital wallets, including popular cryptocurrencies like Bitcoin (BTC).
The newly implemented rules for online gambling are designed to mirror Australia’s existing regulations for land-based gambling. Notably, certain exceptions are in place, such as allowing credit card payments for online lottery tickets.
Kai Cantwell, CEO of Responsible Wagering Australia, supports the government’s initiative, highlighting its potential to help individuals better manage their gambling habits. He stated, “This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behavior.” Cantwell also emphasized the need for consistent protection measures across all gambling forms to prevent individuals from shifting to less-regulated gambling activities, which pose higher risks.
The gambling industry has been granted a six-month transition period to adapt to these changes, with full enforcement of the ban starting on June 11. Australia’s communications watchdog has been given the authority to ensure compliance with these new restrictions.
Cryptocurrency users have a well-known penchant for gambling, whether it’s on the latest digital assets or significant regulatory outcomes like the approval of spot Bitcoin exchange-traded funds (ETFs). For instance, on January 11, users of the betting platform Polymarket wagered $12 million on the approval of Bitcoin ETFs.
Beyond serious financial bets, crypto enthusiasts also engage in more lighthearted wagers, such as predicting Elon Musk’s social media activity or guessing temperature fluctuations. Despite the new regulations, the allure of crypto gambling remains strong, highlighting the ongoing challenges in regulating this dynamic sector.
By enforcing these new rules, the Australian government aims to reduce the financial risks associated with online gambling, promoting a safer environment for its citizens.