It’s important to have a full understanding of the pros and cons of cryptocurrencies before one speculates or invests. The connection between ICOs, casinos, money laundering, and governmental regulators is one such aspect.
From Business Insider Nordic:
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A wide-ranging report by Credit Suisse, the Switzerland-based bank found, found a “high number of gaming and gambling companies” have used the mechanism to raise money. Here’s the chart from the report:
- Credit Suisse
“Momentum is such that ICO funding in the tech sector almost surpassed traditional angel and seed funding in 3Q17,” the report said. “This trend shows no sign of slowing, leading to concerns from industry experts and regulators of over-capitalization.”
In total, more than $4 billion has been raised via ICOs, according to estimates by Autonomous NEXT. Business Insider reported about the massive $500 million ICO to build a floating cryptocurrency casino in Macau.
According to the Credit Suisse report, gambling companies such as casinos have a lot to gain from blockchain and cryptocurrencies. The anonymity of cryptocurrencies is one such benefit.
“Demand for anonymous gambling is evident in the relatively high usage of pre-paid cards – such as the paysafecard- on gambling websites and in consumer behaviour surveys,” the report said. “Gambling with cryptocurrencies – as opposed to fiat money – can currently be conducted without the need to provide identification documents, or in some cases, without the need to create an account.”
Still, regulators are ramping up efforts to clamp down on initial coin offerings. China and South Korea are among the countries that have flat out banned ICOs. The Securities and Exchange Commission’s recently launched Cyber Unit has halted a number of ICOs for not following securities laws.