WILLEMSTAD – The use of cryptocurrency as a payment method within Curaçao’s gaming sector remains unregulated but is not prohibited, according to Cedric Pietersz, Director of the Gaming Control Board (GCB). Speaking during a parliamentary session this week, Pietersz emphasized that cryptocurrencies, including stablecoins, are widely accepted in the global gaming industry due to challenges gaming operators face in opening traditional bank accounts, including on Curaçao.
Cryptocurrency in the Gaming Industry
Pietersz explained that the Central Bank of Curaçao and Sint Maarten (CBCS) currently has no authority over cryptocurrency transactions, as no specific legislation governs their use. However, proposed regulations to oversee cryptocurrency usage are under consideration in Parliament.
"This practice is a legacy from our predecessors," said Pietersz. "Master license holders and sublicense holders have long accepted stablecoins from their operators. These operators often lack local bank accounts, with master license holders maintaining foreign accounts where stablecoins are used for transactions. The Ministry of Finance has approved and adopted this system, converting UST payments directly into euros, which are then deposited into a government-owned foreign bank account."
Understanding Stablecoins
Stablecoins are a type of cryptocurrency designed to maintain a stable value by pegging their worth to fiat currencies like the U.S. dollar or the euro. Pietersz assured that UST payments are backed by reserves in a 1:1 ratio, ensuring transparency and stability.
For operators, payment options include links to digital wallets, allowing transactions in stablecoins. These payments are immediately converted into euros and deposited into government accounts. Pietersz revealed that currently, 60% of payments are made in euros and 40% in cryptocurrency.
Regulatory Measures
Addressing concerns over the origin of cryptocurrency funds, Pietersz noted that new anti-money laundering (AML) and counter-terrorism financing (CFT) guidelines are set to be introduced in January 2025. These will include specific provisions for cryptocurrency transactions. Additionally, operators undergo rigorous screening, including checks against international sanctions lists, before receiving a gaming license. The GCB also enforces compliance with Curaçao’s unusual transaction reporting laws, which cover all crypto transactions.
Parliamentary Developments
These revelations came during the parliamentary debate on the Landsverordening op de Kansspelen (LOK), a new gambling law. The Parliament approved an amendment mandating a review of the law after three years. The LOK was passed with 16 votes in favor and six against. Opposition party Trabou pa Kòrsou supported the legislation, while MAN, PAR, and PNP voted against it.
This decision marks a step forward in modernizing Curaçao’s gaming sector while addressing the complexities of cryptocurrency payments and ensuring compliance with international standards.
