Relationship between settlements and betting the CIS region

The relationship between digital currencies and gaming in the CIS region has been changing rapidly in recent years, especially as the payments sector has embarked on rapid digitization.

SBC Summit CIS participants wondered how the regulatory framework has changed due to the fact that digital currencies have taken a leading place in the gambling and betting sector.

Max Krupyshev, CEO and co-founder of CoinsPaid, describes the current situation as a «double-edged sword» in terms of its role as digital currencies and how their position in the payments ecosystem is evolving.

He said: «I began in 2013, and nobody spoke about regulation, but in 2015 all the crypto conferences were about regulation because something new appeared, and it was new to everyone. 

On the one hand, it was easier earlier because it was something new something technological you could come to the bank, open an account for crypto business, but now you come to a bank, they ask you what licenses you have? What do you do? And, how do you verify the user? 

It’s because crypto is one of the recommendations from institutions that are responsible for finances, but if you come to a large business, and then say, well the acceptance of currency. Back then it was difficult to do it because these lawyers had no documentation of all this. So, back then it was easier to say no.»

He added that it was easier to do business in 2013 and stressed that the definition of cryptocurrencies might not be clear and piecemeal regulation would not be helpful.

Ilya Machavariani, Senior Partner and CEO of 4H Agency, then asked if players were considering alternative payment options.

Alexandr Bondarenko, CEO at Wooppay, said: «Let’s begin with the question of why people use crypto, when it comes to players for example, it’s possible that they don’t fully want to disclose their identity. And they have these assets and they need to use them somewhere.

We understand that in such a case when the regulator pushes the limits in terms of conservative payments and crypto. We need to offer something we need to act somehow proactively.»

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