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Self-Exclusion Schemes and Crypto Casinos: The Intersection

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340,000+ people fighting gambling addiction in the UK itself. The most workable method to get out of the persisting activity is by way of a ban. GamStop provides this service without any charge with a view to benefiting the society and gambling community. 

Urges to relapse are frequent, making it hard for many gamers to stick to their conviction of ridding the problem. Crypto casinos play a crucial role here. Since it’s impossible to trace this transaction back to the player, the problem gamers indulge themselves and are not able to get over their addiction.

What is GamStop? 

GamStop is a Britain based company that offers self-exclusion schemes to vulnerable gamblers. It is a free service. UKGC rules make it compulsory for all gambling sites to register under GamStop as a clause to obtain a license. This lets the entire UK online gambling market come under the aegis of GamStop for the first time. 

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But still, UK players can play on multiple casino sites not under GamStop that operate outside the UK. People burdened with addiction can access it from any casino or website. The ban is available in periods of 2 or 3 months to 2 to 5 years, and they are unconditionally binding. The operators have a crucial role to play here by way of:

• Promotion of the scheme 

• Monetary contributions

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• Quick registration and easy access for all players

Gambling in Cryptocurrency

The popularity of cryptocurrency before 2018 came mostly from the anonymity it offered. Financial transactions could be made without the notice of organizations, and gambling access could be gained into restricted jurisdictions. Its reach is almost unlimited and can get into contested spaces of laws, rules, and even health. 

So, it was initially popularised as criminal in nature, but the ill repute was soon cast off. As compared to a 2-3 business day period of different modes of encashment, higher speeds of operation lead to quick exchange of rewards with greater safety and little complication.

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GamStop Cannot Be Accessed Without ID

GamStop monitors customers to provide services to them by way of valid identity proof. Players are regulated and the bans are granted to individual customers. Anonymous players cannot seek this service. As they are not mandatory in crypto gambling sites, compulsive players can spiral into their addiction. Operators do not have liaisons with GamStop, rendering players vulnerable to risk.

Even if identity proof is compulsory on some crypto sites, a transaction in the same way makes them immune to investigation. Customers can conceal their cyber footsteps or severe linkages with UK-based sites and go on gambling. This is further complicated by the sometimes illegal status of the offshore operator.

It is impossible to trace their actual location if gamblers using VPN login to casinos from any place on the globe. By choosing locales out of the jurisdiction of GamStop, a player is technically free to participate in any and every type of iGaming of their choice.

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Why GamStop is Avoided by Gamers

Two kinds of gamers seek ban services. 

  • Low-Risk Players: Those who are at low risk do not really have a gambling problem but rather are vulnerable to fall prey to it. They can resist it by their own effort if they are convinced enough or seek help. They are not the ones liable to go around the restriction. 
  • High-Risk Players: The other is the high-risk players- those who have a problem but may or may not be aware of it. They find self-exclusion too exhausting and keep going on the path of problem gambling. This behaviour is enabled by crypto gambling as they get their kicks even in the ban period. The risk they face is discussed below.

Return to the Habit 

Due to the air of secrecy of cryptocurrency, its seduction is ardent. The feedback system of the brain highlights the rewards of risk-seeking behaviour and encourages the gamer to turn back from self-exclusion. It feeds the thrill of “getting away with crime”. It is pleasurable enough to revive the gambling habit but by the time the thrill is gone the addiction comes back with renewed vigour.

Debt Acquisition Scenario

Cryptocurrency websites do not ask about the real funding source of customers. Neither is their imposition of upper limits to betting. So, to continue playing players must rely on transactions over and over again. This creates a vicious cycle of re-purchasing cryptocurrency until the expiration limit of credit/ debit cards is reached. Gamers are at the risk of meeting individuals with criminal records while at it to sustain the funding. It creates a real monetary trap.

Conclusion

Crypto gambling has been popularised due to the privacy and anonymity it offers. It is an advantage that is not associated with other transaction modes. Crypto gambling is not recommended for those who want to get over addiction. The gambling problem is real and difficult to come to terms with. 

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By seeking help from exclusion sites and operators, the compulsion can be overcome and the games are truly enjoyed. It is the duty of all gamers to open up about their addiction and help their companions who may or may not be conscious of their habit.

Binance

Binance to Support the Incoming Polkadot Parachain Slot Auction

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  • Binance exchange will support the Polkadot (DOT) parachain slot auction.
  • The company plans to start the event in November, this year.
  • Doing this will help Polkadot achieve its ecosystem development.

Amid the waves blowing around the incoming Polkadot (DOT) parachain slot auction, Binance exchange has also announced that they are ever-ready to support the Polkadot’s parachain event.

With this synergy, Binance emphasized that it will soon start its Polkadot parachain slot auction program mainly in November 2021. Additionally, the month set to begin the event by the Binance team moves in line with the proposed Polkadot parachain slot auction date.

Meanwhile, Binance didn’t officially give the exact day and time that it will start the event. At the moment, the only news we have is that the team aims to start the parachain event in November.

To clarify, Binance intends to do its part and what it can to help influence Polkadot towards achieving its ecosystem development milestone. In turn, doing this will also push up the growth and adoption of the Polkadot parachain slot project to the mainstream.

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Also, for further info about the event, the Binance team noted that they will keep their eyes on it and provide the community with more updates.

Until then, the team assured that the community should expect a separate announcement in no time and more details than what they have disclosed now. In addition, Binance advised that the community should stay tuned as they are bringing more initiatives ahead.

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CFTC slaps Tether and Bitfinex with $42.5 million fine over misleading statements

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  • Tether is hit with $41 million in fines to settle allegations of misleading statements. 
  • Bitfinex was fined $1.5 million for facilitating retail transactions for American citizens. 
  • Tether has been under the lens of financial regulators over claims of stablecoin reserves for years on end. 

Financial regulators have investigated Tether and Bitfinex for criminal probe into bank fraud and misleading statements. Currently, over $62 million worth of Tether is in circulation, which is likely to impact the broad cryptocurrency market. 

Tether and Bitfinex hit by CFTC fines; there may be an impact on the crypto market

US regulators have accused Tether of making untrue or misleading statements. The Commodity Futures Trading Commission (CFTC) slapped a penalty of $41 million on Tether and $1.5 million on Bitfinex. 

Bitfinex was fined for allowing American citizens to transact on its exchange. The CFTC announced the penalties earlier today.  

Tether has played a key role in the crypto ecosystem, and the US Justice department’s focus is on the stablecoin’s activity in nascent stages following its launch in 2014. Federal prosecutors investigated transactions that were linked to crypto, and banks were unaware of their nature. 

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Former probes remained confidential, according to sources close to the Department of Justice (DoJ). A criminal probe is one of the key developments in the crackdown on cryptocurrencies by regulators. 

Over $62 billion worth of Tether tokens are in circulation; proponents believe it is too big to fail. In a statement, Tether stated:

Tether routinely has an open dialogue with law enforcement agencies, including the DOJ, as part of our commitment to cooperation and transparency.

In light of recent events, however, Tether is faced with a more significant challenge, safeguarding the interests of the crypto community by not failing. Traders across fiat-crypto exchanges and peer-to-peer platforms exchange their fiat for stablecoins to access the cryptocurrency ecosystem. 

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If Tether fails, the inflow of stablecoins to exchanges could be impaired, triggering a drop in capital inflow to Bitcoin. 

In their concurring statements, CFTC was quoted:

The settlement with the Tether respondents finds that there were misrepresentations regarding the assets backing tether, specifically that the USDT tokens were backed 1-to-1 by US dollars. The evidence establishes that this assurance provided to tether customers was not 100% true, 100% of the time.

Tether officials are held accountable by the CFTC. Further, the CFTC has applied a commodities’ definition to stablecoins. Regulators are concerned that enforcement actions may confuse their role in cryptocurrency and stablecoin regulation. 

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The CFTC’s statement reads:

In a recent speech, SEC Commissioner Hester Peirce asked an important question when it comes to the US regulators’ review of stablecoins: Are we fighting for investors or are we fighting for jurisdiction? This question is front-and-center in my mind as I consider these settlements.

Tether believes that,

As Tether represented in the Order, it has always maintained adequate reserves and has never failed to satisfy a redemption request.

Tether has suggested that the CFTC’s findings regarding Bitfinex are related to its activities before December 2018. The stablecoin issuer is focused on resolving the matter and moving forward. 

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The statement reads as follows:

We are grateful that the market has consistently demonstrated its trust and confidence in Tether. We will continue to earn that confidence and lead the industry in innovation and transparency.

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Crypto Market Cap Gained $90B: Bitcoin Taps $60K, SOL up 8% (Market Watch)

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After a six-month hiatus, bitcoin met the coveted $60,000 level before retracing by roughly $1,000. Ethereum went above $3,800 briefly.

Bitcoin skyrocketed by roughly $3,000 in hours following positive reports coming from the US and touched $60,000 for the first time since April. Some altcoins have also joined the ride, with ETH exceeding $3,800 and Solana spiking by more than 8%.

BTC and $60K Met Again

Just two days ago, bitcoin had retraced hard and was close to breaking below $54,000. This came after an unsuccessful attempt to overcome $58,000 for the first time in roughly five months.

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However, the bulls hadn’t given up yet and initiated another impressive leg up yesterday, as reported. This time, BTC reclaimed the aforementioned level and kept climbing upwards.

BTC went as high as $58,500 before another brief retracement drove it back below $57,000. At this time, though, reports emerged claiming that the US Securities and Exchange Commission could greenlight a Bitcoin Futures ETF as early as next week.

The implications of such a significant development in the US led to an immediate price surge. BTC added more than $3,000 of value and touched $60,000 for the first time since April this year.

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As of now, bitcoin has lost around $1,000 of value, but its market cap is still above $1.1 trillion. The dominance over the altcoins has increased to just shy of $46%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

ETH Reached $3.8K: SOL Up by 8%

Ethereum struggled in the past few weeks as it was unable to break above $3,600 decisively. It even retraced by a few hundred dollars but went on the offensive yesterday and continued north today. As a result, the second-largest crypto broke above $3,800 for the first time in months but it was short-lived and is back below it now

Solana is another impressive performer on a 24-hour scale. SOL has surged by 8% in a day and trades well above $160. Uniswap’s 4% increase has driven UNI to $26, but the rest of the larger-cap alts have stalled or retraced.

Binance Coin, Cardano, Ripple, Polkadot, Dogecoin, Terra, and Avalanche are all slightly in the red.

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Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

The top 100 largest coins have a new representative in the face of NuCypher. NU has exploded by more than 500% in a day and has neared $2, but many community members speculate on Twitter that it could be a pump and dump scheme.

Polygon has increased by 25% to $1.6. The total crypto market cap is above $2.4 trillion for the first time in months as well, after a $90 billion rise in a day.

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