Exploring Crypto Regulations and the Casino Landscape in Switzerland
Both crypto and online gambling are the trends of the 21st century. Although people all over the world love to gamble and trade the sad truth is a lot of harm has been done due to lack of regulations. However, many crypto enthusiasts aren’t too thrilled about the government stepping in to oversee the market. After all, one of the main selling points of cryptocurrencies is that what you do with it is your business. Here we will focus on Switzerland and see how they regulate these two markets and whether the regulations had an impact on their popularity.
A True Online Casino Gaming Hub
Switzerland is the home of some of the most beautiful land-based gambling establishments. Ever since 2019, online casinos have become legal as well. Swiss gamblers can easily find some of the best platforms on https://topcasinosuisse.com/en/ and learn about their unique features. Operators don’t need to be based in Switzerland to accept Swiss players. They do, however, need to be partnered with one of the land-based casinos. It’s really an elegant solution to the issue, and it allows local companies to gain additional profits for taking on additional responsibility.
It’s also worth pointing out that a lot of online operators do accept crypto payments. This helps Bitcoin and other currencies stay more relevant, and it allows players to send and receive money safely and cheaply.
Switzerland and the Adoption of Cryptocurrency
As a country, Switzerland has been renowned for its banking sector all over the world. Even today, some of the global organizations like the Red Cross are hosted in Switzerland. So, it’s only logical that a country like that would like to explore means of effective crypto implementation. There are many advantages and disadvantages to using cryptocurrencies:
Pros:
- Faster and safer transfer
- Inflation protection
- Cost efficiency
- Anonymity
Cons:
- Volatility
- Fraud
- Appealing to criminals
One thing is pretty evident, and that is that flaws of cryptocurrency aren’t caused by the technology. In fact, this approach to transactions is revolutionary. The main issues can all be addressed through regulations, which is why many cities in Switzerland are working on adopting this relatively new payment method. Zurich was one of the first cities to embrace this technology, and back in 2014, they added crypto ATMs.
As mentioned, the online gambling sites that are allowed here also have Bitcoin and other currencies as payment methods. Once again, helping blockchain transactions becomes more mainstream.
How is Crypto Regulated
SFTA, or Swiss Federal Tax Administration, and FINMA, or Swiss Financial Market Supervisory Authority, are in charge of regulating crypto assets. In other words, the law recognizes cryptos as wealth and income, and it is taxed as such. This type of regulation makes the country appealing to many crypto businesses. In fact, companies Ethereum, Tezos, and Solana all have HQs in Switzerland. Not only that, but there are also over a thousand blockchain-based companies that operate here. They all help the economic growth and stability of this country.
How Recent Events Impacted the Market
Almost all crypto enthusiasts are up to date with the scandals that struck the market in 2022. One of the biggest exchange companies, FTX, filed for bankruptcy, leaving many of its users in a limbo of uncertainty. Additionally, there was a crash of Terra/Luna, which were marketed as stablecoins. Swiss crypto valley was affected by this scandal, and it has decided to undergo a major rest.
The problem in these cases wasn’t the lack of regulation, it was that companies managed to circumvent some of the requirements. In other words, it was a lack of compliance that led to the crash. As a result, the regulatory framework will become stricter.
Can Crypto Market Learn from Gambling Regulations?
Over the past two decades, the regulations in online gambling have undergone significant changes. Responsible management of player finances is one of the requirements, but it’s difficult to thoroughly oversee every gambling site out there. This is why land-based casinos in Switzerland are taking responsibility for online sites. In a way, this approach allows the market to help regulate itself to an extent.
However, is this model applicable to the crypto market, and would bigger companies accept this risk, and at what price? More importantly, how would that affect the users and growth? Many people lose money on crypto because they really see it as another form of gambling. They want to buy ultra-cheap coins in hopes the value will slightly increase and that they can cash out.
If the cost of compliance increases, that will affect the initial offer, and a higher cost will definitely deter potential new buyers. Currently, the market seems to be recovering, but it’s evident that people are more cautious than ever about buying cryptos for the first time.