How Israel’s Crypto Regulations Affect iGames
Israel’s Money Laundering and Terror Financing Prohibition governmental authorities’ release of the new legislation directly affected the way banks and other financial bodies collaborate with cryptocurrency.
This new legislation was supposed to come into effect since June of 2018 but it was postponed with no disclosed reason till October 2018. Israel has seen some severe uproar as the majority does not support the decision.
This legislation was posed to monitor the cryptocurrency transactions and report any suspicious activity. A source suggests, that they are especially going to target online gambling activities. They did a brilliant job explaining all current legal aspects of blockchain gambling. But everything may change if the government wants it.
How Do These Regulations Affect Blockchain Platforms?
Some of the existing industries that are already building on the blockchain platform will have to hold their plans. They need to wait it out to see the outcome of this regulation to make sure they will not be affected adversely in any way.
It is of great importance to point out that online gambling in Israel is strictly forbidden, but Israel has become a go-to place in search for technology and tech support staff. Many would wonder if this regulation was specially targeted and posed to root out the online gaming industry on Israel territory.
The government has made drastic actions to restrict the traditional and regular online gaming casino establishments. However, cryptocurrency casinos are still available in Israel and still provide services without leaving any footprint of the carried-out transactions.
Focusing on the fact that the cryptocurrency industry is developing at a very fast-paced rate, the imposed regulation and the indecisiveness of the Israeli governmental body has left some startups in a very precarious state.
Others welcomed this regulation as it provided a comprehensive list of the type of cryptocurrency transactions that had potentials to be flagged, as well as those that are forbidden in the eye of the Israeli institutions.
Effects of These Regulations On iGaming Platforms
This regulation will hurt the plan for Israel to become a preferred hub for cryptocurrency in the nearest future. The clampdown and regulation were not accepted with open arms by the iGaming platforms as it hinders their activities in many ways.
For the online gaming platforms, the regulations will be a restricting factor they would have to put into immerse consideration when deciding what type of platform they would be creating and which services they would be providing.
There is a need for path-breaking regulations in Israel if it still wants to remain a leader in the race for crypto dominance.
iGaming establishments that intended to utilize the benefits of using crypto would have to hold their plans and hope for the best form of regulation from the government and regulatory bodies.