Ban on Credit Cards and Cryptocurrencies
In an effort to curb gambling problems, Australia has implemented a ban on using credit cards and cryptocurrencies for online betting. This means Australians can no longer wager using borrowed money or anonymous digital funds.
Extension to Digital Wallets and Future Credit Forms
The Australian Associated Press reported Tuesday that the ban extends to credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and any future forms of credit. These new regulations mirror those of physical casinos, where credit cards are also banned. However, online lotteries are still allowed to accept credit card payments.
Impact on the Cryptocurrency Market
Previously, Australia’s online casinos thrived on cryptocurrency transactions due to their speed and anonymity. A 2019 study revealed that 30.7% of Australian gamblers used crypto for online gaming.
Calls for Broader Prohibition
Kai Cantwell, CEO of Responsible Wagering Australia, urged the government to extend the ban to include currently exempt forms of gambling. Cantwell emphasized that this measure is crucial for helping people maintain control over their gambling behavior.
Legislative Amendments and Enforcement
Lawmakers voted in favor of amending the Interactive Gambling Act 2001 late last year, initiating a six-month transition period. Companies that fail to comply with the ban could face fines of up to AU$234,750 ($155,085). The communications regulatory authority has also been granted increased power to enforce the restrictions.
Future Measures and Advertisement Ban
The federal government is considering a proposal to gradually eliminate gambling advertisements over three years, following 31 recommendations from a parliamentary inquiry on problem gambling. Minister for Communications Michelle Rowland indicated that further announcements on gambling prevention measures would be forthcoming. Rowland stated, “Australians should not be gambling with money they do not have.”
Rising Crypto Adoption in Australia
Despite the ban, Australia remains a significant player in the crypto market, with 17% of the population owning crypto, surpassing the global average of 15%. This rising acceptance is further evidenced by the recent approval of two new exchange-traded products for investment in crypto assets.
Australia continues to navigate the balance between regulating gambling and embracing emerging financial technologies, reflecting its proactive approach to safeguarding public welfare while adapting to global trends.
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