Will Crypto Gambling Be Affected After The SEC Sued Binance And Coinbase? 


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Regulation of the cryptocurrency sector is always a challenge. The Securities and Exchange Commission (SEC) has been at the forefront of cryptocurrency regulation in the United States. Given the importance of the US market, regulatory developments have global implications. Gambling is already under heavy scrutiny in most countries, and the nexus between cryptocurrencies and gaming raises an interesting question.

SEC sues Binance and Coinbase

The SEC sent shockwaves in early June 2023. file a lawsuit Against the two major cryptocurrency exchanges, Coinbase and Binance. Coinbase is the most prominent exchange in America and Binance is the largest exchange in the world.

SEC CEO Gary Gensler has escalated action against cryptocurrency entities to the highest level since taking office two years ago. The chairman of the agency echoed earlier comments about bringing order to the “west” of cryptocurrency trading.

The lawsuit alleges that the exchanges violated securities laws by allegedly offering securities without proper registration. These exchanges are involved in billions of dollars worth of cryptocurrency commerce every day, and the lawsuit has rocked the industry.

This battle will likely be a battle of survival for centralized cryptocurrency exchanges. Notably, both denied the allegations and claimed they always followed SEC requirements. Binance also faces more serious allegations of misleading users regarding its ability to prevent market manipulation and insider trading. The suspicion of securities law violations is serious enough.

One of the fundamental questions that emerges from this drama is what exactly is security? The SEC has previously pursued similar allegations against major crypto projects such as Ripple (XRP) and Telegram Open Network (TON). In the case of TON, the project had to effectively come to a halt after conducting a $1 billion initial coin offering (ICO).

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Defining Crypto Securities Still a Challenge

The SEC will need to more comprehensively define the boundaries between cryptocurrencies that are within its scope and those that are not. The agency noted that coins and tokens typically operate without a team commitment to invest user funds for earnings rather than securities. Decentralized projects like Bitcoin fall into this category.

If the SEC gains the upper hand and forces the registration of cryptocurrency exchanges, it could have significant repercussions. For one, exchanges may delist targeted tokens like Polygon and Solana, offering only coins that don’t invite SEC scrutiny. The SEC has targeted many other cryptocurrency service providers in the past, but none had the scale to operate on such a large scale.

The dramatic collapse of cryptocurrency exchange FTX may have prompted tougher action against big players. FTX, Led by Controversial CEO Sam Bankman-Fried, Has Incredibly Broken, Revealing Bad Corporate Governance Practices at the Heart of a Key Exchange Became. The bankruptcy put the industry in jeopardy, prompting Congress to hold hearings on the ongoing crisis.

Some cryptocurrencies are on the SEC’s radar

Some cryptocurrencies are feeling the heat of the crackdown, even as the exchange lawsuits make headlines. The lawsuit cites Decentraland (MANA), Solana (SOL), Sandbox (SAND), and several other cryptocurrencies that the SEC considers to be securities.

These coins took some heat and lost billions of dollars across their market cap when the lawsuit was dropped. More specifically, the SEC considers these assets to be company stock. There, it relies on corporate leadership to make decisions for users to buy stocks and earn dividends on stocks. While this classification may seem arbitrary, the market is pushing for SEC labels on various crypto tokens.

However, coins such as Bitcoin and Ethereum are not securities by the SEC. These coins have good decentralization and their price does not depend on the leader’s actions to benefit the coin holders. The project appears to be highly decentralized, with pricing dependent on the market and coin community. Especially if the development team retains a decisive role in the token’s performance even after launch, the project may be considered a security.

Relevance for Crypto Gambling Enthusiasts

Crypto game enthusiasts should be aware of coins and tokens subject to SEC scrutiny. It is natural that these projects will sink, but the immediate future is uncertain.ripple lab legal issues We are working with the SEC, which now appears to have resolved the issue.

Still, highly decentralized underlying cryptocurrencies are generally safe from the SEC’s tentacles. Crypto gamers can still gamble with the indicted tokens, but it will become increasingly difficult to trade the tokens once exchanges begin delisting them under pressure from the SEC.

Prominent online cryptocurrency broker eToro has delisted some of its SEC-covered coins.

Therefore, this lawsuit will cause inconvenience for the targeted cryptocurrencies for the time being. But if the exchange were forced to be completely delisted and the project developer forced to shut down, the impact would be enormous. In the meantime, cryptocurrency users will continue to trade and bet using these cryptocurrencies and unaffected cryptocurrencies such as Bitcoin without issue.

BC.GAME is a crypto gambling exchange with complaints

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The game itself has significant regulations in multiple jurisdictions. BC.GAME has strived to comply with regulations in its area of ​​operation. license Like the UK Gambling Commission, the Malta Gambling Commission and the Curacao Gambling License, we formalize our operations. Users can bet on a wide variety of slot games, live dealer games and various sports betting markets on BC.GAME.

Cryptocurrency users are following the SEC’s movements very closely. These developments could fundamentally shape the industry. Until then, gamers can seamlessly bet on his BC.GAME with unaffected coins.


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Conor the Tech Veteran
He previously spent 6 years publishing research on tech stocks, and believes in using a combination of fundamental, technical, and quantitative analysis. Prior to a career in tech stocks journalism he was a technology and semiconductor analyst with a research team.

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