UK Gambling Commission Issues Warning To Online Bitcoin Websites
The status of crypto currencies like Bitcoin remain a thorn in the side of many lawmakers around the globe especially in the gaming world. It is no secret that many oppose Bitcoin as it has a volatility and anonymity which make it he the ideal option for those looking to escape the constraints of the law. The definition of Bitcoin as a commodity just like money is not applicable everywhere and depends on the policy of the jurisdiction.
In the UK it has now been declared as “single purpose vouchers” which means they are liable to value added tax. This was not always the case as the UK government at first hinted that Bitcoin-based businesses would not be required to register with regulators. This week the UK Gambling Commission issued a warning to Bitcoin operators who are offering UK residents the online option to wager. The UKGC stated that these operators would require a license even if their offering were conducted with alternate currencies.
They insist that the operators need to be licensed by the Gambling Commission irrespective of where they are located in the world if they intend to facilitate gambling to consumers in Great Britain. In a letter to operators the UKGC also stated that they wrote a letter to operators who were offering “prizes of money or money’s worth to gamblers,” Bitcoin would fall under the definition of money’s worth here.