As the use of Bitcoin continues to grow around the world and the rise of online Bitcoin casinos continues unabated, it is important to know the status of Bitcoin and online gambling in the country that you happen to find yourself in. At GoldBitcoinCasino.com, we are building a series of articles about the current situation of Bitcoin in several different countries, as well as its availability for use to fund online gambling. The latest country to be under the spotlight in our ongoing series is the People’s Republic of China.
What is the current legal status of Bitcoin in China?
In China, Bitcoin is able to be used in transactions between private parties. However, the Chinese government have taken a strong stance on the use of Bitcoin among official institutions. It is officially forbidden for financial institutions to handle transactions made using Bitcoin. It is also forbidden for these institutions to offer prices in Bitcoin, buy and sell units of the cryptocurrency or insure any kind of Bitcoin products.
Similarly, in Hong Kong, a special administrative region of China which can decide its own economic policy, has stated that while there is no specific legislation relating to Bitcoin and other cryptocurrency, any crimes committed involving Bitcoin can be prosecuted.
What does this mean for Chinese Bitcoin gamblers?
In mainland China, the only legal form of gambling is the state lottery, though it is not considered gambling. All other forms of gambling are illegal. That said, illegal gambling is big business in China and this has also spread to the online gambling sector. A very important factor to consider in relation to gambling in China is that in the two special administrative regions of Hong Kong and Macau, gambling laws are far laxer and, in the case of Macau, the gambling sector is very important as Macau generates more income from gambling than any other city in the world.
Online gambling is illegal within mainland China and the government do not grant gaming licenses to online casinos. Similarly, Chinese are not supposed to access foreign-based online casinos when they want to scratch that itch, though this is a frequent occurrence and, accordingly, many online casinos now offer their services in Chinese so as to entice more players.