Posts Tagged ‘bitcoin’

SatochiDice Named in SEC Bitcoin Investigation

Tuesday, March 25th, 2014

The hits just keep on coming for the virtual currency, Bitcoin, as it is now being reported that the Securities and Exchange Commission (SEC) is carrying out a formal examination into dealings between the online exchange, MPEx, and Bitcoin online casino, Specifically, the issue at hand is based on SatochiDice’s stock sale of Bitcoin via MPEx.

A letter of request regarding the transaction(s) was sent to MPEx by the SEC inquiring about an online exchange for trading that was Bitcoin related. In the letter, a request for access to contracts and other various documents relating to was asked for.

MPEx confirmed to Bloomberg News that it received the inquiry and is confident it did not break any laws relating to the inquest. The SEC letter names SatoshiDice as the basis of its investigation, yet states no specific interests or details, which is typical SEC practice.

An SEC investigator/spokesperson stated that the SEC is very interested with the dealings between the Bitcoin-based online casino and MPEx, going on further to say that Bitcoin-denominated stock exchanges are illegal. In the US, federal law states that securities-based trading platforms need to be licensed. The SEC’s choice to open an inquiry does not mean the company’s staff broke rules per se; it’s simply an official inquiry.

Online gambling industry insiders won’t find this inquiry as a shock, as Bitcoin and everything related to the currency is under the microscope in one way or another. While it is understood that one can invest in companies with Bitcoin currency, the investigation is based on whether unregistered exchanges or broker dealers operated in violation of the securities laws or not.

While MPEx is forthcoming that it did, in fact, receive the letter from the SEC formally requesting information, those at the SEC are less than forward with information regarding this investigation.

What we do know is that SatoshiDice listed shares on MPEx in August of 2012. This fact is confirmed by MPEx. It is also reported that the SEC letter seeks “all documents or contracts” as vague as it sounds. In a nut shell, the SEC wants to look at all documents surrounding the sale in 2012.

MPEx does not currently have SatochiDice listed at this time. This is a simple question of regulation and making an example of any new type of currency’s legality within the system and how it is legally perceived altogether. Beyond the concept of online gambling itself being continually developed and accepted legal, so too is the concept of virtual currency.

Because this is a first where trading in this realm is concerned, we honestly doubt much will come of this investigation directly related to this dealing. Perhaps some blood and sweat will come from it, but it’s more probably to say the SEC is just poking its head in the hotbed. US securities laws in the grand scheme of things do not pertain to MPEx because Bitcoin doesn’t necessarily fall under the legal definition of money.

Virtual currency acceptance is another matter. Satochi’s tie to Bitcoin is easy. The Bitcoin concept was at one point loaded with much hope and potential. The once highly popular digital currency’s concept was born from a 2008 paper written by one or more computer programmers under the name Satoshi Nakamoto.

BitCoin Continuing with iGaming Player Payment Focus

Saturday, June 29th, 2013

bitcoin currencyWhen you stop for just a moment to ponder all the advances in technology that are coming out of the online gaming industry, you cannot help but marvel at the fact that so much has happened so fast.

And yet, more is to come. Taking the internet from a place where you learn about casino games to a place where you play casino games for real money has been no easy task indeed. From innovative software technology advances that have brought casinos to the HTML5 era, 3rd party regulative systems that effectively audit the virtual casinos, to safe and secure payment and banking options, the internet gambling industry has come a long way indeed.

But just when we’ve begun to conclude the issues surrounding gambling online and regard its true legitimacy in new markets, including the slow-starting US region, a new virtual currency looms in the background…or rather, continues to loom, as most gamers still haven’t heard of this currency option.

Bitcoin payments may very well emerge online as a new, somewhat controversial form of money that may also create a few waves with other banking systems currently used. But let’s face it – there’s not one aspect of online gambling that is not completely competitive. And casino payment services are no exception.

While Bitcoin has historically been used in a few online industries in the past, it has yet to make its grand entrance into the online gambling industry. Gaining new interest within the virtual casino realm at the iGaming Super Show this month, Bitcoin is now appearing on the radar. However, keep in mind there is great caution being exercised regarding this innovative, yet controversial currency option.

If a large casino brand with the means to go live immediately were to use Bitcoin as a payment option at its online casino, there is no doubt that there would be some attention paid in great detail by regulators who are – quite frankly – not sure of the option’s true legitimacy at this time.

Just remember how long it took for the fire to catch within the US market regarding gambling online. With online casino operators clamoring for licenses in the US alone, it is not necessarily feasible that any one of them would welcome additional examination from regulators.

Then there’s the whole demand issue. Online players in large part don’t know about Bitcoin and its concept to being with. Let’s just say that no one is asking for it…just yet. It will be a smaller operation that takes on Bitcoin first.

Bitcoin itself remains confident. Even before the new interest displayed at the iGaming Super Show, the company has stated it is simply a matter of time until the Bitcoin concept is adopted within the online gambling industry.

There are indeed a few things Bitcoin already has going for itself. Within legalized gambling areas, player identity is already a prerequisite. This means the money laundering stigma theoretically remains the same for all types of payments and banking efforts. Bitcoin only elevates the privacy issue on the customer-facing side only. This is a legitimate attempt at transparency. And as far as tackling the demand issue goes, Bitcoin also believes that newer, upcoming casino operators are attracted to the fact that Bitcoin’s concept is innovative and considered a standout option, subsequently making them attractive to new online casino players.

So, what’s on the Agenda?

Indeed, there is some further interest in Bitcoin on the horizon. is an authorized media partner of this year’s Bitcoin London seminar taking place in Canary Wharf. The company is also boasting that the founder of online 3D poker site PKR, Jez San, will be at the conference. San has showed an interest (whatever it may actually be) and has been present at various previous Bitcoin related events.

We will definitely remain tuned in to see which online casino operator adopts the Bitcoin first. For more information on this digital casino chip concept, stay tuned to the OCS Blog!