Norway has presented a new set of regulations to the European Commission. New restrictions aim to curb the activity of online gambling providers in the country. Currently, there is a monopoly of two-state run companies over all gambling activities. Nevertheless, some internationally licensed providers, who do not have a legal right to operate in Norway, still attract users. To stop such illegal activities Norway came up with the regulations that make it illegal for banks and financial institutions to process payments for online gambling services. Furthermore, these institutions are required to report information on individuals who might be associated with such activities to the regulatory forces.
According to Norskecasino.casino resource, these steps could indeed help the country strengthen the monopoly in the gambling market. Nevertheless, with the onset of new payment technologies with cryptocurrencies, users wanting to continue using unlicensed online providers could resort to these services avoiding the traditional financial system altogether. Cryptocurrencies are already used for anonymous transactions that users might not want to show on their bank accounts. Although most major cryptocurrencies are not truly anonymous, finding users behind each transaction is costly and time-consuming so law enforcement will not start the investigation unless the issue is very serious. Customers paying for online gambling could easily get away with it if they start using cryptocurrencies.
So how will the new regulations on gambling affect cryptocurrencies? It is difficult to say. Although the online gambling websites are unlicensed in Norway, they still operate legally in some jurisdictions, so they have a regulatory authority. If their regulator forbids them from dealing with cryptocurrency, they can not offer it as a means of payment on their websites. Nowadays, cryptocurrencies fall into a regulatory grey area in most countries, which means that they are neither legal, nor illegal. In these cases, many providers have the ability to accept payments in cryptocurrencies. If enough people in Norway start using virtual coins to fund their gambling activities, it could have some real consequences for the industry (check this link on this issue).
If cryptocurrency-related activities increase, more businesses trying to meet the demands of these customers will emerge. It could cause the creation of different virtual currency exchanges and other related solutions. This, on one hand, is good for cryptocurrency holders, as they could also see the value of their assets go up because of higher demand. On the other hand, it could have negative consequences as well. The Norwegian government is adamant in cracking down on illegal gambling activities. If the government sees that cryptocurrencies are actively used to perpetuate the existence of unlicensed providers, the only way they would be able to stop them is by controlling the flow of cryptocurrencies. Currently, Norway has taken a very open-minded approach towards cryptocurrencies and could foster a beneficial environment for associated activities. If the government decides that these payment tools are abused, it could change its stance and regulate cryptocurrencies more strictly.
