Online Gaming with Digital Currencies: A Comparative Legal Study

This dissertation examines different regulatory approaches towards regulating cryptocurrency by selected jurisdiction, namely Nevada and Malta, where online gaming is legal. Chapter 1 gives a brief introduction on the purpose of this research and the identify the risks involved with online gaming with cryptocurrency.
Chapter 2 outlines a detailed introduction of cryptocurrency and blockchain developments. It uncovers some of the risks and regulatory challenges imposed with using cryptocurrency as a payment option over traditional forms of payment for online gaming. An overview of FATF and Moneyval and its recommendations is discussed. This provides the foundation for understanding the development of the comparative studies on Nevada and Malta legislations.
Under Chapter 3, an introduction on US and Nevada regulatory approaches towards cryptocurrency is discussed. A brief description on related court cases is analyzed to better highlight the currency regulatory landscape in the US and Nevada. While Chapter 4 provides an analysis of EU and Malta regulatory approaches towards cryptocurrency and blockchain. This chapter outlines important legislations at the EU level as well as at the Malta national level.
A comparative analysis on Nevada and Malta regulatory approach on the application of cryptocurrency in online gaming will be discussed. Criteria examined are areassuch aslegality, licensing and registration, AML/CTF, as well as the restrictions of interoperability of crypto to existing market. It also includes an analysis of the regulatory sandbox program by both Nevada and Malta, followed by key taxations issues.
General conclusions are drawn under chapter 6 highlighting some similarities and discrepancies between both jurisdictions when regulating both cryptocurrencies and online gaming. Effective regulatory applications addressing various risks involved with cryptocurrency and online gaming are examined. This research concludes with recommendations for future research areas, namely in credit extensions and legal implications when in-game cryptocurrencies can double-up as online casino dividends.