Should Coinbase be regulated as a casino?

Published Jun 12, 2020
[2 mins read]
Bitcoin and crypto insider Max Keiser has recently argued that Coinbase, a popular US-based cryptocurrency exchange, may be akin to an online casino and therefore needs to be regulated as such.
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The argument runs that since some of the tokens listed on Coinbase are created specifically for the purposes of being listed at the website, Coinbase takes on the qualities of a casino. In fairness, though, Keiser means “phantom currencies.” This, according to Keiser, is sufficient reason to consider Coinbase a casino.

Coinbase operates and supports several projects and now, the platform is planning to introduce certain altcoins as one of the asset types it supports. News that more altcoins would be listed on Coinbase sent the value of many popular alternative tokens up, including VeChain, DigiByte and Siacoin.

Keiser’s position within the crypto and blockchain community is unambiguous and he has been the source of much good. Yet his decision to call Coinbase a casino may be a little too extreme. There have been many projects that are effectively online gaming portals, but they present themselves as such.

Some of the successful projects we have seen recently include Wagerr, BetFury and BetProtocol. The last one develops a platform that operators can use to integrate games. According to Keiser, Coinbase is technically a casino and should be regulated as such. The company is operating outside CA law.”

There have been a number of successful crypto projects that have transitioned from fringe projects into full-blown casino experience. Whether they feature Bitcoin, USD Tether or Ether, casinos such as mBitCasino, Bitcasino and BitStarz have been continually expanding their clout in the igaming space.

However, Keiser may have a point insofar as “phantom currencies go.” Not having full disclosure about specific currencies may indeed lead to sudden spike in their value which, if the team behind such initiatives isn’t intent to pursue in future, may lead to loss on the part of investors.

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CGN senior journalist 

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