Cryptocurrency casinos have been arguably the top use case for cryptos. Crypto gambling websites have existed for almost as long as Bitcoin and they are extremely popular among the community. They offer a few perks compared to regular casinos, for instance the ability to verify your bets using a provably fair system as well as instant deposits and withdrawals or privacy.
The director of the FinCEN, Kennet A. Blanco stated that crypto casinos should follow their guidelines about gambling clubs. He also mentioned that crypto casinos should file SAR’s if they encounter suspicious CVC (convertible virtual currency) activity.
Most cryptocurrency gambling casinos are operating without any kind of license which makes them quite unreliable. The FinCEN is looking at this financial sector and mentioned that casinos are targets for malware scams and business e-mail compromise schemes.
Licensed casinos have to comply with the BSA or any other law related to money services businesses.
Blanco explained how they plan to apply AI to identify new crime trends.
In the case of using “big data,” FinCEN is able to apply machine learning and other tools to all the reports and other information available to us to identify and build out illicit finance networks and identify new financial crime trends, which we can share with law enforcement, our OFAC colleagues, regulators, and the private sector (such as the CVC advisory mentioned previously).