Will the Implementation of Regulations Kill the Cryptocurrency-Dependent Industries?

Cryptocurrencies, particularly Bitcoin, have been around for over 10 years now. Currently, we still can’t say that it has already reached the mainstream market, but many still see its potential. In the next years, it is expected that more people will be using cryptocurrencies to transact online.

It was really in 2017 when many have started to take notice of Bitcoin and other altcoins like Ethereum, DogeCoin, LiteCoin, Ripple, and etc. During this year, Bitcoin’s value peaked at 20,000 US dollars. This made quite the noise and many people and businesses have started to take cryptocurrencies as a mode of payment.

Definitely, the rise of cryptocurrencies has affected many online businesses positively. An example is the online gambling industry which includes online casinos and sportsbooks. Many have decided on using cryptos to gamble as it lets them avoid the hassle that banks would give them in terms of transactions that concern gambling.

Anonymity is also something that many punters and players get from using cryptos. It makes their transactions feel safer as using cryptos means that you no longer need to disclose your banking information to the casino just so you can make a deposit.

This also makes online betting and gambling easier for many people in the US. Many of the US players are placing bets on offshore-based casinos. Especially the ones who are residing in the states where online casinos and betting are still found illegal.

Federally, online casino gaming and betting aren’t illegal as long as the bets are placed outside the US. However, this can be quite risky as jurisdictions, where these casinos are licensed, are different. This means that it can be a bit tough if these players encounter any problems.

The best that they can do is check online casino review sites like SilentBet. It has the information that you need to determine how well an online casino or bookie is doing. This site has reviews on many online casinos and bookies like Librabet that are worth checking out. It lets you know whether an online bookie or casino accepts cryptocurrencies like Bitcoin. 

Aside from businesses and consumers seeing the potential of cryptocurrencies, governments in different countries also started to take a look at it. This still means, however, that it took around 10 years for regulators to notice cryptocurrencies.

We can say that they have already seen cryptos even before 2017, but it was really when more people started to get into it because of its value and potential value that some regulators started to take actions about it.

An example is the recently implemented EU law called the Fifth Anti-Money Laundering Directive of the AMLD5. This isn’t exactly a directive that only focuses on cryptocurrencies but it would have quite an effect on the industry.

There are two ways that this particular directive can affect crypto businesses. One effect is seen negatively but this could be mainly for smaller firms. The directive basically requires crypto-businesses to comply with regulations that could actually cost more money. This can be a problem for small firms as it’s possible that they can’t afford it and they will either have to close or get involved in an acquisition.

Now, that’s a problem that can take place in the early stages, but the thing is that this can also have a positive effect on the industry. This can be seen as a chance for crypto businesses to prove that the industry is serious about real solutions.

This can be a chance to let regulators focus on the positive side of the industry instead of the negative possible uses of cryptos that critics would point out like how it can be used for fraudulent and money-laundering activities.

The stability of cryptocurrencies can also be positively affected by this in the long run. The value of cryptos really depends on what the public and investors think of it. An example is how the value of Bitcoin plummeted when South Korea announced its ban on the country.

The same happened when China chose to do the same thing. The value of Bitcoin also significantly decreased after these countries didn’t want to deal with cryptos. However, when these countries announced that they chose to regulate its use instead, Bitcoin’s value then increased.

This just shows that regulations could positively impact the value of cryptos because it may mean that more people or investors would invest in it. Overall, a proper regulatory framework can make the industry stronger and so that’s something to be hopeful for. It’s better than trying to avoid regulators touch the industry.