Over the course of the past decade cryptocurrency has emerged from the shadows to become a global powerhouse. Regulated online Bitcoin casinos have played a significant role in this growth, as the number of Bitcoin casinos in operation has risen dramatically in recent years.

Gamblers are now recognising the advantages that Bitcoin has over traditional currencies and are using it to their benefit. However there has been concern from some players and industry experts that cryptocurrency casinos may not be as safe as first thought.

In this article we analyse those claims to help you stay safe whilst gambling online.

Why Does Safety Matter?

For many players, unscrupulous providers are just part of the gambling world. So, what’s the worst that can happen? If you fall victim to such a provider, you risk more than just your money—you could lose your freedom as well.

Many unlicensed online gambling companies invite customers to join extra lottery services. This might seem appealing, but these lotteries are not licensed or regulated. That makes participating in them illegal.

If authorities find you playing illegal lotteries, ignorance is no defense in court. Your mistake could lead to heavy fines or even jail time in serious cases.

Besides this, using unsafe gambling providers carries usual risks. These include data theft and financial loss.

To be sure you’re abiding by all of the rules, you need to be sure you’re playing at a trustworthy online gaming site. Safety and trust are two things that not only you should consider, but the provider should consider also. Many people opt to gamble with 777 Casino as they are seen as an online casino committed to player safety, they have invested a staggering amount of time and money into ensuring they are regulated and fully compliant, earning themselves a reputation among gamblers as a solid, dependable and much fun UK online casino.

Are Bitcoin Casinos Regulated?

In the UK all casinos that offer their services to British gamblers, whether online or offline are regulated by the Gambling Commission, this included Bitcoin casinos. For a new gambling company to open its physical or virtual doors, they must first obtain a licence from the Gambling Commission to do so.

In order to satisfy the Commission that they deserve a licence, companies must demonstrate their ability to offer safeguard the sensitive data of their customers and to operate in a socially responsible way.

Unfortunately, some online casinos do manage to slip the net and offer their services to customers without a licence. If you are worried about the safety of a supplier you can click HERE to check if they are fully licenced and regulated by the Gambling Commission.

The British gambling industry is one of the most heavily regulated in the world, leading to a safer space for players

Understanding Terms

When it comes to staying safe, knowledge and understanding are always your two biggest allies. Unfortunately, Bitcoin casinos can be confusing to outsiders as they frequently use terms and phrases that are not widely known.

Here is a brief list and description of all the words and phrases you should be aware of before using a Bitcoin casino.

Blockchain

This is the term used to describe the technology that is used to facilitate cryptocurrency transactions. In simple terms, Blockchain is a heavily encrypted digital ledger that which is viewed by many as more secure than any other existing financial transfer software.

Token

Crypto tokens are a type of virtual currency that exist on their own blockchains. They represent an asset. Casinos specializing in cryptocurrency can provide players with tokens. These tokens often work like loyalty points or promotions. For example, they are used to give free spins or free bets. Crypto tokens are only accessible to the person with the private key. This is important for security in online casinos. The private key ensures the player is old enough to play. It also verifies their account. This helps prevent money laundering and other illegal activities.

Peer-to-peer

You may logon to a Bitcoin casino and see no mention of cryptocurrency, instead transactions will be referred to as ‘peer-to-peer’ or ‘P2P’. This simply describes financial transactions that are not created by a central banking authority, so P2P is often used as shorthand for cryptocurrency transactions.

Fast Cash Out

One of the key benefits of using an online casino which accepts cryptocurrency as a form of payment is the speed at which you can collect your winnings. If you’re lucky enough to get a win, cryptocurrency can be transferred into your Fiat currency and into your account instantly, whereas traditional online casinos can take up to 3-5 days.

Money Laundering, Fraud & Source of Funds

The British gambling industry is under strong pressure from the government. They must increase efforts to stop money laundering and fraud. In recent years, several high-profile gambling companies were reprimanded or fined. This was due to not taking their responsibilities seriously.

Whereas traditional online casinos can struggle to monitor fraud and money laundering effectively, Bitcoin casinos have no such problem. Every single transaction made with a cryptocurrency leaves a permanent trail.

Criminals using cryptocurrency for illegal activities are more likely to be caught than those using traditional currencies. For this reason, Bitcoin casinos have a much lower risk of money laundering compared to other online casinos.

All new online casinos must complete a source of funds check, it’s no different for casinos which specialise in cryptocurrency. This means they must display some form of proof that their money comes from a legitimate source, limiting criminal activity.

Age Verification

Not everything about Bitcoin casinos is better or safer than online casinos dealing in traditional currencies. Bitcoin and other cryptocurrencies offer their users a level of anonymity that is simply not available to traditional currencies.

Unfortunately that means that they are susceptible to being duped by underage customers. However, this is balanced out by the difficulty of obtaining cryptocurrencies in the first place.

Conclusion: Are Bitcoin Casinos Safe?

In the main, yes. Like all gambling companies, Bitcoin casinos are licenced and regulated by the Gambling Commission. This means that they have the same duty of care to their players as regular land-based casinos or traditional currency online providers.

The extra security and tracking of cryptocurrency transactions actually makes regulated online Bitcoin casinos safer when it comes to fraud and money laundering. However, this is somewhat counterbalanced by the anonymity available to cryptocurrency users.

All in all though, Bitcoin casinos are just as safe if not safer than traditional currency online casinos.