A recent report by the Law Commission has put forward cryptocurrency as a form of payment for gambling.
In a recent report, the Law Commission of India have taken cryptocurrency into account as a valid payment method for online gambling. They revealed they would be pursuing the implementation of virtual currency for payments on online casino sites. This proposal was stated in their 276th report to the Union Minister Of Law and Justice. Though only a proposal, this represents a pretty significant U-turn when it comes to crypto and gambling, both of which are currently prohibited in India.
Wagering Without Cash
The regulator proposed that digital currencies could be a positive solution to many of the issues with gambling in India, leading to better regulation and the ability to identify and deal with problems. The overall message was that gambling without physical cash is the way to go. Cryptocurrencies, contrary to popular believe, could actually improve the state of online gambling in India.
The commission stated that transactions could be made “cashless, with credit cards, debit cards, NET banking and virtual currency.” Furthermore, the report suggested that transactions be linked with operator’s and player’s PAN cards to “ensure transparency and state supervision.” Players would have to opt-in to online gambling, and the state would be able to intervene if there are any issues.
More Secure Gaming
Cryptocurrency, and the blockchain technology which is core to its existence, is proving to be revolutionary across many industries, but it sits particularly well with gambling. Platforms such as CoinPoker already provide players the opportunity to play poker online for cryptocurrency. They also utilize blockchain technology and smart contracts, both of which have distinct advantages.
Gambling using the blockchain is more transparent, and greatly reduces any opportunities for fraud. The Random Number Generator (RNG), which “rolls the dice” or “spins the wheel”, so to speak, is audited on the blockchain, and once set cannot be tampered with. This means that site owners have no say in how the outcomes land, while players can confirm the randomness of their games by surveying the blockchain.
Payments can be handled using smart contracts, which remove the need for any human tampering with transactions. When payers win they can be automatically paid. It’s the kind of trust that will bring in new players, and give existing players faith in the industry.
Proper Regulations Overdue
Legislation around casinos and gambling varies greatly around the world. Both cryptocurrency and gambling have been on quite the journey when it comes to regulations in India.
In July, the Supreme Court held its latest hearing around the legitimacy of cryptocurrencies, but not enough arguments were brought forward to move the case forward, or for the crypto-freeze to melt away. The final hearing will take place 11th September, where the fate of cryptocurrency in India will be decided, for now at least.
The governing body responsible for creating the regulatory framework for cryptocurrency is not pushing a blanket ban. They are trying to put together a case for the proper regulations in order for cryptocurrency to be useful in society, and are currently in the final stages of finalising this framework.
The latest report from the Law Commission of India demonstrates that the battle of cryptocurrency is just beginning. Both lawmakers and government figures are focused on finding the right regulatory policy to make it work. Online gambling and sports betting is one area in which cryptocurrency seems to be able to play a positive role, and the report suggests that it could, one day, become a valid payment method.