Cryptocurrencies, credit cards banned for gambling across Australia in new crackdown –

On June 11, 2024, Australia banned the use of cryptocurrencies in online gambling. It is part of a plan by regulators to stop Australians “gambling money they don’t have”.

In addition to cryptocurrencies, credit cards linked to cryptocurrency wallets have also been restricted.

Cryptocurrencies have become one of the most common means of payment for gambling. Therefore, we may see more announcements from Australia on gambling prevention in the near future.

Australian Government Cracks Down on Cryptocurrency Gambling

Australian Communications Minister Michelle Rowland said “Australians should not gamble with money they don’t have”. She went on to say that the move is a means to mitigate the “damage” caused by the current government in recent years.

According to a report by SOFTSWISS, bets placed in cryptocurrencies increased by 83% from 2022 to 2023. Australia has been home to many online casinos, most of which accept digital assets as payment.

A 2019 study conducted by “Gambling Research Australia” found that 30.7% of gamblers in Australia prefer to use cryptocurrencies for online gambling activities.

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Independent bodies that intervene on new laws

Kai Cantwell, who oversees Responsible Wagering Australia, an independent body that monitors the Australian gambling market, also spoke. He urged regulators to extend the ban to exempted forms of gambling. Kai believes the measures need to be consistent across all areas of gambling, otherwise they could push Australians towards “less regulated types of gambling”.

The new law goes hand in hand with existing measures, particularly in brick-and-mortar casinos. Credit cards are already banned in land-based casinos from 2023. Initially introduced in 2023, the new rules were introduced as an amendment to the Interactive Gambling Act 2001. Related platforms were given a six-month transition period to conform to new rule sets. Failure to comply can result in fines of up to $234,750 Australian dollars ($155.00 USD).

Increased regulatory scrutiny amid cryptocurrency boom

Australian regulators have also started to focus on the ever-growing cryptocurrency sector. In May, the Australian Tax Office issued a warning to cryptocurrency exchanges. In the notification the tax office requested 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 firms that it says are offering unregistered securities. The move follows actions by the US Securities and Exchange Commission (SEC) that paved the way for cryptocurrency regulation.

Disclaimer: Cryptocurrencies are a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.

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