The government warned betting companies that failing to comply with the new rules could result in a fine of up to 234,750 Australian dollars ($155,000).

Australia Bans Crypto and Credit Cards for Online Gambling to Protect Citizens

To safeguard its citizens from spending money they don't have, the Australian government has implemented a ban on using cryptocurrencies and credit cards for online gambling.

On June 11, The Canberra Times reported that Australia started enforcing this prohibition, aimed at online gambling platforms.

New Regulations and Penalties

The new rules stipulate that companies failing to comply could face fines of up to approximately 234,750 Australian dollars ($155,000). The regulations cover credit cards linked to digital wallets, cryptocurrencies like Bitcoin (BTC), and other forms of digital credit.

Alignment with Land-Based Gambling Laws

These new rules for online betting are designed to align with Australia's existing laws on land-based gambling. However, there are exceptions, such as allowing credit card payments for online lottery tickets.

Industry Response

Kai Cantwell, the CEO of Responsible Wagering Australia, supports the move, emphasizing its role in helping individuals control their gambling behavior. He stated:
“This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behavior."

Cantwell also urged the government to extend the ban to all forms of gambling, warning that inconsistent protection measures could drive people towards less-regulated and potentially more harmful gambling options.

Transition Period

The gambling industry was given a six-month transition period before the full ban was enacted on June 11. Australia's communications watchdog is responsible for enforcing these new restrictions.

Crypto and Gambling

Cryptocurrency users are known for gambling on various activities, from the latest memecoins to significant regulatory decisions, such as approvals for spot Bitcoin exchange-traded funds (ETFs). On January 11, users of the betting platform Polymarket wagered $12 million on the outcome of ETF approvals.

In addition to Bitcoin ETF decisions, crypto users also bet on outcomes related to spot Ether ETFs, with March seeing $2.4 million in bets. This bet was resolved when the ETF received official approval on May 23.

Crypto enthusiasts also engage in more lighthearted bets, such as predicting the number of tweets by billionaire Elon Musk or guessing temperature changes for a given month.

Conclusion

The Australian government's decision to ban the use of cryptocurrencies and credit cards for online gambling reflects its commitment to protecting consumers from financial harm. By aligning online gambling rules with those for land-based gambling and empowering the communications watchdog to enforce these regulations, Australia aims to create a safer gambling environment. The industry and regulators alike continue to monitor and adapt to the evolving landscape of digital currencies and gambling practices.