Cryptocurrencies, along with the blockchain technology that supports them, have been praised for years as the Messiah of the whole online gaming scene. However, this was before anyone was aware of the potential complications and disruptions blockchain technologies might bring. Let’s try to tackle this topic to better understand this crucial component of modern gaming, such as that available at the Betamo Casino.
Gaming specialists are sincere when they say the unregulated nature of cryptos turned out two be a double-edged sword: At one hand, you have a currency completely private and discreet, and on the other hand, completely unregulated. Sounds fun, but can also be incredibly dangerous.
Value of Virtual Assets
Not many out there are aware that online gaming is more than playing video games. Depending on the game you play, you might be able to purchase different virtual items or even sell player accounts. It is a legit economy niche. League of Legends gamers all over the world build characters they sell on special marketplaces. In addition to that, you can keep your character but sell only one particular item that is in demand. And they are not the only ones. The same thing happens with CSGO, WoW, and other popular esports.
And while there is nothing wrong with selling an extra item from your armory, not everything is a friendly peer-to-peer transaction. VGO is a company that is now bankrupt but was quite a hot topic in the gaming community a while ago. The company offered interested parties to buy so-called skins for the characters of the game that was in the development phase. Gamers all over the world rushed to purchase armors and other features for their characters. The only problem was that the game never saw the light of the day, and buyers from all over the world were left disappointed.
AML Policies and Dark Web
Another issue that comes with blockchain technologies is the lack of accountability. As transactions are as anonymous as they can be, gaming companies have no way to fulfill all AML conditions required to gain a license (and keep it), thus leading them to operate illegally. Illegal companies represent a tremendous risk for all gamers, as there is no authority to make sure they implement safe practices.
Another issue is KYC policies. Companies operating with fiat currencies will simply ask you to provide some documents, but in order to offer crypto gaming services, many crypto sites ditch this step. In the end, you have no idea who you are dealing with, and whether the money you deposited or used to buy a new virtual weapon is being handled in the proper manner. The connection between blockchain currencies and the dark web is strong, and no one can estimate the amounts that find a way from seemingly innocent sites to the dark web.
Jean-Loup Richet, alongside the United Nations Office on Drugs and Crime, conducted a survey that proved blockchain technologies are an essential part of cybercrime. What is even more important is that the two most notable segments, where money laundering takes place, are online gaming and micro laundering. According to Richet, criminals open multiple accounts and move it from one balance to another, until they cash it out, usually by using Western Union or other payment systems that provide good old cash.
Is Online Gambling Industry at Risk?
Let’s try to steer clear from apocalyptic predictions. Would we say the entire industry is at risk? Definitely not. But, that doesn’t mean this is not an issue that should be tackled immediately. Cryptos could eventually do more harm than good: Esports and online gaming have gone through a long path to be accepted as legit activities and sports, and not something teenagers do in their basements. Regardless, it could all be ruined by such incidents. No one wants to sponsor an event that could eventually turn out to be a crime fest.
Blockchain technologies have a lot of potentials, but they can also cause serious issues to the new industry of online gaming. Gamers can only hope companies and regulators will find a way to tackle the problematic behavior.