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Security and Regulation in Crypto Gambling

By Hank Blaine

Crypto gambling is a fluid industry. Although regulation is becoming more nuanced, the type of regulation that has begun to rise may not affect North American gamblers. There are some reasons why. In this blog, check out what makes crypto betting the choice for sports handicappers that wish to remain secure and anonymous and why regulation may never take their security away.

How Does Security and Regulation in Crypto Gambling Work?

Cryptocurrencies by nature are more secure than fiat currency

By its very nature, cryptocurrencies are more secure than fiat currency. For example, when we purchase an item with our credit card, we provide our credit card information to an agent, the company we purchased the product from.

Amazon has access to millions, probably billions, of credit card numbers. Amazon knows where we live, our phone numbers, and anything else attached to the credit card number we use to purchased products on Amazon’s site.

This isn’t the case with cryptocurrencies. We may send crypto from our Coinbase account to your Nitrobetting.eu account, but that doesn’t mean that Coinbase knows, or cares, why we are doing it. All Coinbase sees is an address.

Coinbase then sends your crypto to the address wallet. That’s it. This peer to peer transactional nature of cryptocurrencies keeps you anonymous and your crypto safe.Once your crypto lands in your account. You use it in the form of mBTC to place bets. Again, that’s it. The only way someone can hack your account is if they discover your addresses during the transaction phase.

Regulation on the rise… but how?

No doubt, governments would love to regulate cryptocurrency gambling. But the form of regulation would have to be from a bird’s eye point of view. In other words, there is no way governments could regulate crypto betting without regulating all crypto transactions.

Let’s repeat that. The government cannot regulate crypto betting transactions without regulating all crypto transactions. The reason is that each transaction, maybe except Solana transactions which uses something called proof of history to gain consensus, is peer to peer.

The only available record is one that displays a transaction that has been made. It doesn’t some from who to where. It’s address to address.

What kind of regulation could happen? Coinbase already lets the U.S. Government know when we sell our crypto and turn it into cash. We must pay taxes because our crypto is an asset. So we pay capital gains tax on every crypto sale.

But as far as gambling transactions, that’s the limit of regulation at this point. The truth is that governments, including the United States, may never get involved in crypto gambling regulation.

There are many other issues regarding crypto transactions and regulation governments throughout the world are trying to figure out. Crypto gambling may be at the bottom of a giant totem pole.

Where to Bet on Sports with Crypto

Sports betting odds are available all year round here at Nitrobetting. Create a Nitrobetting account now to win tons of crypto from all major sports.

Feel free to browse sports betting guides. While you are at it, go ahead and check out all the latest sports betting odds and more in our online crypto sportsbook.

*All odds stated are subject to change without prior notice.

READ MORE: The Advantages of Crypto Gambling