Asian racing operators urge crackdown on digital currency in illegal betting
The trade group promoting major Asia Pacific racing operators is warning the rising number of online betting sites that allow using digital currencies.
Asian Racing Federation issued a report alleging that cryptocurrencies facilitate not only customers funding their wagering activity but also operators to offshore the criminal proceeds of illegal betting operations.
It notes their capacity to evade scrutiny by gambling regulators and financial watchdogs, facilitating avoidance of AML and KYC procedures.
Asian Racing Federation released a report last month targeting the use of blockchain and digital currencies in illegal betting.
The report warns of digital currency’s capacity to evade scrutiny by gambling regulators and financial watchdogs, thereby “facilitating avoidance of anti-money laundering and know-your-customer procedures.”
The report claims that 780 offshore gambling sites accept at least one of five digital currencies, BTC, Ethereum, Tether, Ripple, and BCH, with the number of online betting and casino sites that accept BTC increasing by seven fold and 13 fold since 2018.
The report alleges that this facilitates not only customers funding their wagering activity but also allows operators to “offshore the criminal proceeds of their illegal betting operations.”
The report singles out Asian-facing betting exchange Citibet as one of the main unauthorized operators using digital currency to target bettors in Asian countries where gambling is either illegal or restricted.
Editing by Rachel Hu