Operators won’t accept crypto payments in regulated Brazilian gambling industry

As Brazil hashes out the final rules for its gambling industry, cryptocurrency payments will be off-limits for consumers and gambling operators

The Regulatory Policy of the Prizes and Betting Secretariat and the Ministry of Finance have published the new rules which will bound the gambling industry in the country. The gambling industry in Brazil will be rolled out in four stages with different licensing and regulatory conditions kicking in as these stages arrive.

The first one, which is set to be completed by the end of April, focuses on the technical and security regulations of the industry, and it clearly states the rules bettors and operators need to follow in order to participate in the gambling industry.

These rules now state that the use of cryptocurrency payments is strictly prohibited, and so is the use of credit cards or cash payment slips, or even cheques. This means that players who wish to gamble would have to use an electronic payment method, hopefully allowing the gambling industry and the country to have a tighter control over AML and responsible gambling.

The same applies for withdrawals, as the only way to cash out your winnings or existing bankroll would be electronically. Players will also be allowed to receive their payments within 120 minutes, one of the quickest standards. Apart from restricting crypto for the use of gambling, operators would also have other obligations.

For one, they would have to make sure that their players are aware of their own gambling habits. Operators would have to disclose betting and financial information with players in their profiles and help them make informed decisions about their gambling.

Operators will also have to meet liquidity risks by having a minimum of $1 million in cash reserves to be able to repay customers in case something toes bad. The reserves must be held separately from player funds, which is a standard practice for most gambling companies.

When this stage is completed, the Betting Secretariat would have to release information about the next stage, which will focus on fraud policies, encompassing CTF and AML measures.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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