Japan signed a law recognising virtual currencies like Bitcoin as a legal method of payment. Even though the bill does not recognise Bitcoin as a currency, it accepted that cryptocurrencies have “asset-like values” that can be used “as payment to indefinite parties for the cost of purchase or rent of items or receipt of services […]

Japan signed a law recognising virtual currencies like Bitcoin as a legal method of payment. Even though the bill does not recognise Bitcoin as a currency, it accepted that cryptocurrencies have “asset-like values” that can be used “as payment to indefinite parties for the cost of purchase or rent of items or receipt of services and which can be transferred by means of electronic data processing systems”. The bill will go into effect on April 1.

“Bitcoin will continue to be treated as an asset unless there are future revisions or directives to Japanese tax law,” was noted in Bitflyer exchange.

The bill is also imposing a few requirements on Bitcoin exchanges in the country. Japan government’s Financial Services Agency (FSA) started regulating virtual currency exchanges and operations last year, but according to the new law, they need to be registered with the Prime Minister.

Requirements are also need to be met while processing digital currency exchanges domestically. For instance, is it essential to have a minimum capital of JPY10 million (US$89,430) as well as IT systems capable to prevent theft and loss. Other requirements include stricter KYC guidelines, establishing the system for employee training and internal rules.

The accounting part still remains unclear for Bitcoin adopters in Japan. Nikkei Asian Review reported that current accounting standards in the country do not cover digital currencies, so there is no guidance yet on how to approach cryptocurrency-related transactions for tax purposes.

Chikako Suzuki, a partner at Pricewaterhousecoopers Aarata believes that missing clarifications pose “a risk that companies that hold virtual currency could turn out to have distorted valuations or that huge losses surface suddenly”.

“The Accounting Standards Board of Japan decided Tuesday to begin consideration, expected to take six months, of a framework for treatment of virtual currency,” was stated in the Japanese news outlet.

China is committing to crack down on all gambling operators illegally promoting overseas casino resorts in mainland China. Casinos are outlawed in China and so is the promotion of this type of gambling venues. However, a number of international casinos have sent marketing and sales representatives to China to attract big-spending players. Following a high-profile […]

China is committing to crack down on all gambling operators illegally promoting overseas casino resorts in mainland China. Casinos are outlawed in China and so is the promotion of this type of gambling venues. However, a number of international casinos have sent marketing and sales representatives to China to attract big-spending players. Following a high-profile case last year when 18 Crown Resorts staff members were arrested in relation to promoting foreign casinos, Chinese lawmakers are taking an extra effort in order to prevent illegal advertising of illicit gambling service.

Public Security Minister Guo Shengkun commented: “We must seriously investigate and severely punish those companies and individuals involved in enticing and organising Chinese tourists to gamble in overseas casinos. We must severely punish those casino-related illegal labour agents and crack down on activities for investing in overseas casinos.”

Because of the Communist Party Congress happening later this year in Beijing, the minister also organised a special meeting of the country’s highest police officers to set up the action plan before the event takes place. The government is aiming to stop the flow of money from the country and gambling is being blamed for the major part of that.

Guo Shengkun said: “The police must root out criminal gangs operating online gambling and show no mercy to “underground banks” which aid with the flow of cash to fund cross-border betting.”

It is already stated, that following the Crown Resorts arrests, almost all land based casino operators have ceased their marketing activity on mainland China.

Midi, a development consortium from Malta, proposed a casino hotel and shopping complex for Manoel island. The consortium obtained a 99-year concession on this part of the island 17 years ago. Midi had a meeting with NGOs to introduce the proposal and final development plans. Even though the plans are not public yet, it’s been […]

Midi, a development consortium from Malta, proposed a casino hotel and shopping complex for Manoel island. The consortium obtained a 99-year concession on this part of the island 17 years ago. Midi had a meeting with NGOs to introduce the proposal and final development plans. Even though the plans are not public yet, it’s been reported that Malta will host a hotel casino, along with retail outlets and luxury apartments. However, the proposal received negative feedback from several officials in Malta.

Gzira mayor Conrad Borg Manche referred to the plans as being completely unacceptable: “For the average citizen who is not shopping or gambling away money, there is very little being offered. The sea will be a mass of vessels so people cannot swim in the wake of the yachts of the rich. This is yet another community which caters for the elite and shuts out the citizen.”

Similarly, environment officer Tara Cassar said that the island would be turned into a large shopping complex with high-priced apartments and nothing to draw the people of Gzira to use it.

Chairman of Alternattiva Demokratika (AD) Arnold Cassola demanded a full investigation into the contract between the Maltese government and the Midi consortium: “If any of the conditions of the contract have been breached, Manoel Island is to be returned to the Maltese government and is to be turned into a national park.“

“As things stand, AD totally refutes the proposal of the Midi developers to develop Manoel Island into a hotel at Fort Manoel, a shopping complex and a casino-hotel at the historic 18th century Lazaretto, retail outlets and luxury low-rise apartments, a helipad and superyacht marina, while taking over also the foreshore including the current swimming spot beneath the fort to build a water taxi pontoon.”

“The Midi developers have already caused enough damage by reducing Tigne Point to a concrete slum. We reiterate that Manoel Island, the only lung in the polluted and congested Tas-Sliema and Gżira area, should be turned into a national park for the enjoyment of one and all.”

However, a Midi spokesman Graham A Fairclough said: “The Deed includes an Outline Development Permit clearly setting out the parameters of the development and specifies the extent of development permitted including a mix of low rise residential and commercial development, marina, restoration, dredging, land reclamation and infrastructural obligations.

“The company is fully committed to the restoration and rehabilitation of the heritage buildings on Manoel Island and the extensive provision of space for leisure and heritage walks and events. As such, the masterplan, in line with the Deed, envisages that 62% of Manoel Island is to be dedicated to public open spaces (including the creation of an 80,000‐square metre park), 20% of Manoel Island is to be dedicated to heritage buildings and 18% of Manoel Island is to be dedicated to new buildings. The foreshore will be fully accessible to the public and swimmers.”

The agreement demands that development must be completed by March 2023. Otherwise, the consortium will be fined daily for 3 years until the contract gets cancelled.

During the annual meeting of the Association of British Bookmakers (ABB), former culture secretary MP John Whittingdale warned betting shop operators to be alerted. Due to the recent government’s review on gaming machines, they are likely to face significant changes. Following the announcement by UK’s Gambling Commission stating that fixed odds betting terminals (FOBTs) could […]

During the annual meeting of the Association of British Bookmakers (ABB), former culture secretary MP John Whittingdale warned betting shop operators to be alerted. Due to the recent government’s review on gaming machines, they are likely to face significant changes.
Following the announcement by UK’s Gambling Commission stating that fixed odds betting terminals (FOBTs) could be harmful to players, the UK government is especially focused on controlling their operation. Parliamentary inquiry on gaming activity could lead to limitation by new laws and lower minimum bets established.

In 2015 a regulation on fixed odds betting terminals (FOBTs) was introduced. It established £50 as the maximum stake per spin a player can bet before being controlled by operators. However, last month an assessment was issued proving that the measure is not delivering expected results.
“Given all of that I would have to say I do think there will be proposals for significant change. I can’t say I would be surprised if there are quite radical measures produced when we come to it and I think you should brace yourself” – commented John Whittingdale on the possible change. Despite his predictions, he said he believes that a tighter control on FOBTs will not solve the problems of the industry.

“Does it simply seek to shift the issue of problem gambling or work with the industry to solve it? A stake cut will drive problem gamblers into other forms of gambling – in casinos or amusement arcades, or worse the illegal gambling sector with all the attendant links to money laundering and illegal money lenders” said Whittingdale.

ABB chief executive Malcolm George believes that a cut in stakes would damage the horse and greyhound racing industries. According to his research results, if implemented, by 2020 a £2 stake could result in more than £290 million loss from horseracing.

“The ABB stands ready to engage with all interested parties in government and the broader stakeholders in our industry. The next few months will be critical, not just for betting shops, our shop colleagues and customers, but also for horse and greyhound racing and the whole eco-system that exists around shops. With our members’ support, I believe we can secure the future of betting shops for many years to come,” Malcolm George commented on the issue.

The Australian Senate has passed the Gambling Amendment Bill 2016 which placed a ban on internet poker and in-play sports betting. The Senate has been reviewing the proposed changes since November 2016. The main goal of this law was to close a number of regulatory loopholes. For example, some major operators have been offering in-play […]

The Australian Senate has passed the Gambling Amendment Bill 2016 which placed a ban on internet poker and in-play sports betting.

The Senate has been reviewing the proposed changes since November 2016. The main goal of this law was to close a number of regulatory loopholes. For example, some major operators have been offering in-play betting over the telephone rather than online.

It is expected that such move will encourage main gambling companies to leave the country. Until now, operators Vera&John and 888Poker have already ceased their operations and it is likely that Pokerstars is soon to follow.

Industry experts believe that customers wishing to continue playing poker online will turn to unauthorised websites.

Liberal Democrats Senator David Leyonhjelm, who openly announced his opposition to the amendments, was quoted by HuffPost Australia stating that such changes are “stupid”.

“It’s stupid; if you want to play poker, there are lots of opportunities in Australia, at casinos and tournaments. It’s not as if there isn’t a great deal of poker playing already, but they’re just stopping it online. The whole world is online now” Senator Leyonhjelm said.

“The original 2001 law was meant to stop online gambling of many kinds, but it didn’t, there was a loophole. There is quite an active online poker community in Australia. I don’t think it will succeed for those really determined. If you have a [virtual private network] or offshore account, you will still play. It’s a stupid situation to be in.”

“It will promote the black market. There are ways to circumvent these prohibition approaches. People will gamble using foreign providers by various means. They will be in the hands of sometimes shady providers, and if they get ripped off, they will have no recourse” Leyonhjelm commented on the decision.

Despite the heavy criticism from the European Commission (EC), Germany approved a new federal gambling treaty. Industry experts believe that this move could lead to an expansion of Germany’s sports betting market. The leaders of 16 states of Germany voted to approve the new State Treaty on Gambling. It lifts the previous treaty’s controversial cap […]

Despite the heavy criticism from the European Commission (EC), Germany approved a new federal gambling treaty. Industry experts believe that this move could lead to an expansion of Germany’s sports betting market.

The leaders of 16 states of Germany voted to approve the new State Treaty on Gambling. It lifts the previous treaty’s controversial cap on the number of available sports betting licences. Further, the treaty aims to increase enforcement against unauthorised operators and allows the future possibility of legalising online casino gambling activity.

The treaty, which will take effect on January 2018, must still be ratified by each individual German state. It was reported that politicians of the northern state of Schleswig-Holstein have already advised that the treaty is unlikely to be approved, even though the state has a long tradition of supporting online gambling.

Earlier this month EC expressed their criticism stating that the treaty was “not a viable solution” to the problems highlighted in the failed 2012 treaty.

The German Sports Betting Association (DSWV) said the vote was a “small step in the right direction”, but the new regulations are “not yet suitable for creating an attractive legal offering” that will convince German punters to support local betting sites.

In the meantime, Mybet commented: “As a member of the DSWV the company supports the offer by the association to start a dialogue with politicians to develop a mutually satisfactory sustainable solution.”

China issued draft rules that, if enacted, would require exchanges to identify their clients. The People’s Bank of China (PBoC) circulated new guidelines to regulate the country’s Bitcoin industry. The new rules would subject domestic bitcoin exchanges to current banking and anti-money laundering laws. According to the document, Chinese Bitcoin trading platforms would also have […]

China issued draft rules that, if enacted, would require exchanges to identify their clients.

The People’s Bank of China (PBoC) circulated new guidelines to regulate the country’s Bitcoin industry. The new rules would subject domestic bitcoin exchanges to current banking and anti-money laundering laws. According to the document, Chinese Bitcoin trading platforms would also have to collect and identify clients’ information. Further, in order to avoid market manipulation there is a plan to impose the transaction fees.

Exchanges will be required to install special systems that will collect customer information. Suspicious activity will be reported to responsible authorities and PBoC will be in charge of handling such cases.

PBoC distributed the draft rules to the major exchanges and is now seeking their feedback for revision.

The director of PBoC’s Business Administration division Zhou Xuedong recently said that authorities need to explore “long-term regulatory mechanisms” for all digital currency exchanges in the country. He also advised to create a blacklist of exchanges that do not follow set directives.

“A certain level of regulations on Bitcoin trading platforms are indeed necessary,” Zhou Xuedong commented. “Without the regulations, bubbles will be amplified by speculation, so I recommend some red lines should not be crossed.”

However, market insiders pointed out that stricter rules of bitcoin trading may force traders of bitcoin to find alternative platforms, possibly out of the country and at the same time keep the bitcoin price even higher.

“When exchanges lock up most part of the bitcoin stocks, and thus reduce the supply of the currency on the regular market, people may see an even more expensive bitcoin due to investors could go to grey markets for transaction,” an executive of a Beijing-based bitcoin exchange was quoted by Shanghai Daily.

EU Parliament members have published new draft legislation, seeking to regulate digital currencies. The proposal is deliberating to extend the scope of the Anti-Money Laundering Directive (AMLD) and include the virtual currencies like bitcoin. The existing AMLD, published in May 2015, does not include coverage on such currencies. The draft law could possibly end the […]

EU Parliament members have published new draft legislation, seeking to regulate digital currencies. The proposal is deliberating to extend the scope of the Anti-Money Laundering Directive (AMLD) and include the virtual currencies like bitcoin. The existing AMLD, published in May 2015, does not include coverage on such currencies. The draft law could possibly end the anonymity of cryptocurrency users.

The proposal states that “competent authorities should be able to monitor the use of virtual currencies,” while anonymity would be a “hindrance than an asset for virtual currencies” especially when used for criminal purposes. If approved, the draft law will empower financial watchdogs from EU member countries to identify users by their bitcoin addresses.

“To combat the risks related to the anonymity, national Financial Intelligence Units (FIUs) should be able to associate virtual currency addresses to the identity of the owner of virtual currencies,” says the proposal. “In addition, the possibility to allow users to self-declare to designated authorities on a voluntary basis should be further assessed.”

However, the attempts to end the anonymity of cryptocurrency are not seen for the first time. Last year, the European Union Commission proposed an idea to create a central database that would store records of virtual currency users’ identities and wallet addresses. The database was planned to be accessible to financial intelligence units of EU member countries. According to the same proposal, virtual currency exchanges were required to report who and when used their serviced.

It’s clear that both proposals initiated by EU aim to address the issue of governments oversighting unlawful financial tactics conducted by terror groups. Further, it would solve the problem of “avoiding unnecessary obstacles to the functioning of payments and financial markets for ordinary, law-abiding citizens and businesses.”

If cryptocurrencies are included in the new AMLD directives, bitcoin exchanges will lose their bestselling feature – anonymous transactions.

Cypriot attorney-general Costas Clerides commanded the local police to launch investigation into OPAP. The order came after the Greek lottery and betting operator refused to show its financial records for a government audit unless a confidentiality agreement is signed. According to the local press, the treasurer of the House finance committee sought the advice from […]

Cypriot attorney-general Costas Clerides commanded the local police to launch investigation into OPAP. The order came after the Greek lottery and betting operator refused to show its financial records for a government audit unless a confidentiality agreement is signed.

According to the local press, the treasurer of the House finance committee sought the advice from the attorney general and was informed not to sign the agreement. OPAP then declined to reveal requested financial information, leaving the attorney-general no other choice but to launch the investigation.

OPAP was operating in Cyprus since 1969. However, last year the Cypriot government decided to revise its agreement with the operator and announced its intentions to regulate OPAP’s betting games via legislation rather than through a bilateral agreement with Greece. Particularly, Cyprus was seeking to update the arrangement in terms of the government’s share of OPAP’s Cyprus revenue.

Last month, a report on OPAP’s current deal with Cyprus was issued by the auditor-general Odysseas Michaelides. It identified a number of financial practices that the company failed to deliver. For instance, OPAP is required to return around 70% of sales to punters however, it was claimed that only 60% is actually returned to them. All in all, Michaelides estimated that Cyprus is losing around 2 million each month.

Currently there is also the legislation under consideration that would imply OPAP to pay Cyprus 24% of its gross profits annually. In exchange, OPAP would maintain its monopoly over lottery games for a fixed period of time.

A deal for creating the first ever casino resort in Cyprus is expected to be closed in the next few weeks. This information was confirmed by Finance Minister Harris Georgiades during the meeting of the parliamentary committee on development plans and public expenditure control. The minister said that the government is dealing with the final […]

A deal for creating the first ever casino resort in Cyprus is expected to be closed in the next few weeks. This information was confirmed by Finance Minister Harris Georgiades during the meeting of the parliamentary committee on development plans and public expenditure control.

The minister said that the government is dealing with the final steps on signing the agreement. According to Georgiades, only a few details are now remaining to be clarified. The matter will be brought to the cabinet for a decision as soon as possible, so the process can move forward and be concluded.

According to the local press, there will be a study on the project. Once completed, it will move to the National Authority for Gaming and Casinos which will then issue the necessary licence.

The winners of the project Melco International Development Limited together with their partner Hard Rock Casino expect to open casino and training facility in Limassol in 2017.

The developer will have to make sure that the casino has at least 100 gambling tables, more than 1000 slot machines and a 500-rooms hotel. Melco-Hard Rock will have a 15 year exclusivity period, the licence will be valid for 30 years.

Daily fantasy sports (DFS) platform provider Oulala.com received the first ever Malta Gaming Authority (MGA) B2B Skill Games Licence. Oulala announced that the obtained licence was a culmination of a target set four years ago to be „regulated separately from other iGaming activities“. Due to “the lack of proper regulation”, Oulala was unable to operate […]

Daily fantasy sports (DFS) platform provider Oulala.com received the first ever Malta Gaming Authority (MGA) B2B Skill Games Licence.

Oulala announced that the obtained licence was a culmination of a target set four years ago to be „regulated separately from other iGaming activities“. Due to “the lack of proper regulation”, Oulala was unable to operate legally in the UK, therefore it had to acquire a remote gambling licence.

“The authorities in Malta were the first in foretelling the impact of DFS’s potential in Europe, and the MGA was in fact the first regulator to acknowledge our needs,” Benjamin Carlotti, Oulala co-founder and managing director emphasised that the approval represents an important corporate milestone.

“We are incredibly proud to be participating in the development of a licensing framework that regulates skill-based games, fantasy sports included. This was a highly significant step in the right direction, and our hope is that other European regulators will soon follow suit,” added Carlotti.

The MGA spent over two years examining and working on a new licence category for controlled skill games, which specifically regulates DFS and defines it as a game of skill as opposed to gambling.

A controlled skill game licence is valid for five years and can be used for either B2C and/or B2B purposes. It is a subject to a number of requirements, including segregation of operational and players’ funds.

MGA executive chairman Joseph Cuschieri said that MGA is pleased to be issuing a B2B licence for fantasy sports to Oulala under the new skill games regulations.

“Malta’s regulatory framework ensures a high standard of player protection and game fairness whilst allowing operators space for growth and innovation. It is for this reason that operators such as Oulala have chosen Malta as their primary place of establishment” commented Joseph Cuschieri.

In an interview with CalvinAyre.com, Corinne Valetta of the Malta Gaming Authority discusses Malta being at par with other gambling jurisdictions, EU directives and cryptocurrency in the gambling industry. It’s a common example today that government turns to the gambling industry in order to increase the budget for social services. For example, Philippines. According to […]

In an interview with CalvinAyre.com, Corinne Valetta of the Malta Gaming Authority discusses Malta being at par with other gambling jurisdictions, EU directives and cryptocurrency in the gambling industry.

It’s a common example today that government turns to the gambling industry in order to increase the budget for social services. For example, Philippines. According to the State regulator Philippine Amusement and Gaming Corporation, a part of its gross gaming revenue will be used for government’s health programmes. Meanwhile, in the UK, the funds raised via the national lottery and tax were used for Olympic and Paralympic sports.

Corinne Valetta of the Malta Gaming Authority (MGA) says that implementing operator-friendly policies is the key in order to support the growth of the gambling industry in any jurisdiction.

She commented so as Malta is currently undergoing a process of streamlining many regulations. According to Valetta, MGA is aware of the increasing compliance demands that operators are facing because of the state-by-state jurisdiction.

“We are aware that we have created a compliance nightmare for operators so we are doing quite a bit to tone this down, streamline it to make it more operator friendly. There are a number of initiatives going on throughout the European Union – if I could just mention a few – I think we have gained significant headway within the expert group on gambling services, which we basically discussed a number of issues which affects the industry,” Valetta said in an interview with CalvinAyre.com.

“We try, as much as possible, at par with other jurisdictions, to create a level playing field. It has been so difficult, you know, to comply with other jurisdictions, we are aware of that. We are trying to achieve the right balance,” Valetta added.

The second important issue pointed by Valetta is bracing for the possible effect of the money laundering directive issued by the European Union. According to Valetta, they are now working on the actual implementation of the directive.

“We have a nationwide national risk assessment, which looked at the very sectors – including the gaming industry but now we’ve also gone into the gaming industry per se, and it is open to products, services, scenarios, services controls and we conducted a risk analysis of each and every product, each of every scenario,” Valetta added.

Regarding the cryptocurrency, Valetta said that virtual currencies should be tackled not only by the MGA but also by other concerned Malta agencies.

“That has been something that we’ve been working for a long time. And we need obviously the financial services center on-board, they are the agency directly dealing with the virtual currencies, we need to have the financial intelligence analysis unit on-board especially considering that virtual currency are now included in the directive. We need to have all the stakeholders on-board and we’ve finally managed to get everybody around the table and we kick-started a project in order to announce more on this position,” Valetta commented.