The Curacao Gaming Authority (CGA) has confirmed that crypto payments will continue to be allowed in the market, as it aims to shift to a stricter framework.
Whilst the new CGA policy allows for the acceptance of crypto transactions, it stops short of allowing gambling firms to act as exchanges, payment providers or VASPs.
There is clearly a need for balance identified by the CGA, as it places the burden of due diligence and compliance onto the operator when it comes to crypto transactions, but also enables operators to use third-party VASPs and payment providers.
Digital currencies are being shifted into a new regulatory box as the CGA moves to a new framework. Whilst not being prohibited, they are being considered as high-risk assets.
Under the new rules, operators will be able to accept crypto payments from unhosted or self-custodian wallets, with the CGA outlining its belief that risk-based controls already in place would mitigate against many of the dangers associated with these wallets.
This comes as challenges around self-custodied wallets are far more heightened with the lack of a regulated intermediary, instead subsidised by due diligence from operators with stronger controls.
The CGA also urged operators to use extreme caution when accepting highly speculative assets, known as meme coins, due to their high volatility.
It also expressly prohibits deposits or transactions ‘involving wrapped tokens or bridged assets where the provenance of the underlying asset cannot be clearly established’.
The practical rollout is set to begin in the second half of the year and continue through the first half of 2027.
Within three months, operators are expected to upload a full crypto policy to the CGA portal with a clear compliance/adoption timeline.
This will be followed by a process in the next six months that will see the completion of documented crypto risk assessments, VASP due diligence, wallet ownership controls, transaction monitoring procedures and staff training.
In the next year, the full implementation of wallet segregation, blockchain analytics, reconciliation processes, withdrawal whitelisting or equivalent controls and audit-ready record-keeping will take place.
Eyes will be on the approach of the country’s gambling regulator as it looks to remain permissive of crypto, whilst also increasing the regulatory framework around the use of digital currencies.
