Cryptocurrencies Bitcoin & co – new applications and regulatory challenges

Gaming regulators in jurisdictions such as Malta or the Isle of Man continue to assess wheth-er or not to allow digital currencies in a gaming environment, in particular within the licensed off er under their respective gaming legislation. In June 2014, the Isle of Man announced being “digital currency friendly” and put amendments of its Gaming legislation in place. At the same time, the Isle of Man increased measures in order to protect players and combat crime. Before going into detail concerning the vast applications of digital currencies, the term “Bitcoin” and the understanding of “digital currency” shall be defined for the sake of consistency within this article: Firstly, by using these terms we understand an alternative monetary system being a possible substitution and the opposite of traditional “money” that is emitted and controlled by national (central) banks. Secondly, by the terms “Bitcoin / digital currency” we understand the peer-to-peer-system and its very specific technology of “block chains”. And thirdly, inherent to the block chain system we understand these terms to define a Network Protocol that – for first time in history – allows the “programmability” of money.