The worst global
market sell-off since the 2008 crash will become an important
buying-opportunity for investors, affirms the chief executive of one of the
world’s largest independent financial advisory and services organisations.
The prediction by
Nigel Green, CEO and founder of deVere Group, comes after equities lost a tenth
of their value this week as investors piled into havens on growing concerns the
coronavirus outbreak will hit the world economy and impact corporate profits.
Mr Green notes:
“Until this week, the markets had largely shrugged off the impact of the
outbreak of coronavirus. We warned about complacency leaving many
wide-open to nasty surprises.
“This has now
changed. Investors have done a ‘one eighty’ – from a muted overly confident
reaction to the serious and far-reaching global issue of coronavirus to running
like headless chickens.
“Both extremes
are worrying and could potentially wreak havoc on investors’ returns.”
He continues: “However,
the worst global market sell-off since the 2008 crash will almost certainly
become an important buying-opportunity for many investors.
“With markets on
the brink of correction territory, panic-selling, mis-pricing of high quality
equities, and lower entry points, this could turn out to be one of the key
buying opportunities in the last 10 years.
“Some of the most
successful investors will embrace volatility to create, maximise and protect
their wealth.
“As ever in times
of increased turbulence, there will be winners and losers. A professional fund
manager will help investors take advantage of the opportunities that volatility
presents and mitigate potential risks.
Earlier this
week, Mr Green noted: “In the current volatile environment, investors – including
myself – will be revising their portfolios and drip-feeding new money into the
market to take advantage of the opportunities whilst reducing risk at the same
time.”
The deVere CEO
concludes: “Global investors should not be spooked by the return of volatility
on stock markets but, where possible use it to their financial
advantage.
“Of course,
no–one knows for sure what will happen in the immediate future but, as stock
markets typically rise over a longer-term period, now is the time to capitalise
on the more favourable prices of decent stocks.
“It can be
expected that in coming days, serious investors will be bargain-hunting.”
26th February 2020 – Riyadh –
AlRaedah Finance and Sure Global Tech today signed an agreement for
providing Point of Sale (POS) financing to SME’s across the Kingdom. Representing
AlRaedah Finance, Paul Melotto, AlRaedah CEO, signed the agreement alongside Sure
Global Tech CEO, Basem Bn
Abdullah Alsallom. The Agreement brings together two
industry leaders in providing a unique first of a kind financing solution to
SME’s. The signing ceremony took place on the 26th of February 2020,
at the MEFTECH conference hosted at the Riyadh Ritz Carlton Hotel.
POS Financing is one
of the most innovative products in alternative business finance. Put simply, it uses the business’s POS
terminal to ‘secure’ short term lending — perfect for businesses without many
assets, but who have a good volume of credit/debit card transactions every
month. SME business owners taking advantage of POS Financing won’t have monthly
payments. Instead, repayment is automatic and taken from their daily
credit/debit card processing settlements. It’s simple, easy and affordable
because repayment is a fixed percentage of POS transactions, and not a fixed
Riyal amount. Hence, when POS sales are high, the merchant repays more; when
they’re lower, they repay less.
The amount a business
can apply for is determined by their average credit/debit card sales. AlRaedah
Finance, by way of its advanced Artificial Intelligence models along with AlRaedah’s
Financing platform allows it to quickly analyze data and avail funds ranging
from SR50,000 to SR500,000 to approved SMEs.
Basem bin Abdullah
Alsallom, Sure CEO, said that Sure Global Tech is excited to team up with
AlRaedah in leading the digital transformation through effective business and
digital solutions. Since the establishment of the company in 2004, Sure Global
Tech has been keen on providing different governmental and private bodies with
the best digital solutions as a part of its contribution in the Kingdom’s digital
transformation journey.
“We are excited that Sure
Global Tech has decided to use AlRaedah finance platform to provide financing
to their clients” said Abdulaziz Aldawood, AlRaedah Chief Commercial Officer.
Paul added, “We are
already working on enhancement to the product based on the feedback of our
initial pilot group of SMEs and will continue to provide the Saudi market with
new and innovative financing solutions”.
At times, it might be
tough for small businesses to get funding through traditional financing.
AlRaedah Point of Sale POS Finance Program, in collaboration with SURE Global
Tech is the solution. With approval rates of 85%, a simple application, minimal
documentation and no guarantors, SME’s can get their financing in a matter of
days to grow their business.
About AlRaedah Finance
AlRaedah Finance is the pioneer of bespoke solutions for small and medium sized enterprises, (“SMEs”) seeking to achieve long-term, sustainable growth. Since its establishment in 2014, AlRaedah has become the principal financing institution for SMEs in the Kingdom of Saudi Arabia. Our success is built on our simple, transparent process, our in-depth understanding of the local market, and our flexible financing programs.
AlRaedah Finance offers the most extensive coverage for Sharia’h
compliant financing solutions within the Kingdom, with its headquarters located
in Riyadh, a branch office in Burayda, and aggressive expansion plans. Our ease
of accessibility ensures that we maintain our position within the financial
services sector.
About Sure Global Tech
Since its 2004 inception, Sure Global Tech has developed Saudi expertise
with international standards to provide technological and consultative
solutions for a considerable number of public and private organizations in the
country. By national talents, Sure provides services of software development,
infrastructure, support and operation along with the digital transformation
consultations and other SME-oriented products. Recently, Sure advanced two new
fields i.e. FinTech which is embodied by its new company “SurePay”;
and investing in promising startups.
Investors remain
complacent about an imminent Coronavirus-triggered market correction of up to
10 per cent, warns the CEO of one of the world’s largest independent financial
advisory organisations.
The warning from
deVere Group’s chief executive and founder, Nigel Green, comes as global
equities registered losses on Monday following a surge in cases in Italy, Iran
and South Korea over the weekend, and as the first cases are confirmed in
Kuwait, Bahrain and Afghanistan.
Mr Green
comments: “Global financial markets retreated on Monday as they reacted to the
coronavirus headlines over the weekend. But it is likely that they will quickly
rebound, as they have consistently done in recent weeks.
“Indeed, stocks
keep on reaching record highs.
“This is because
many investors remain complacent about the far-reaching impact of coronavirus,
which is continuing to spread – and a faster pace. This will inevitably hit
financial markets and investors’ complacency leaves many wide open to nasty
surprises.”
He continues:
“Major global companies, especially those with heavy exposure to the Chinese
economy, are lowering profit guidances due to the outbreak. This will have a
knock-on effect across international supply chains and throughout
economies. But is the message being heard by investors?
“In addition,
coronavirus has struck at a time when major economies, including Japan,
Germany, India and Hong Kong are facing a downturn due to other factors such as
the U.S.-China trade dispute and political protestors, which could hit the
world economy.”
The deVere CEO
goes on to add: “Until such time as governments pump liquidity into the markets
and coronavirus cases peak, a near-term correction – of up to 10 per cent – is
increasingly likely.
“We are hoping
for a V-shaped recovery, but our current view is that it will be U-shaped.
“Against this
backdrop and with the ongoing uncertainty over the direction of stocks and
other risk assets, multi-asset portfolios might be favoured by global
investors, given that they offer diversification of risk as well as of return.”
Nigel Green concludes
with a warning: “Global markets are at high valuations and the impact of the
coronavirus on profits appears largely underestimated.
“In general
terms, stocks have hardly been deterred by the coronavirus outbreak. This
complacency is concerning.
“Investors need
to ensure that their portfolios are coronavirus-proofed as cases jump and a
market correction looks more likely.”
The past few months have seen a huge
amount of political change. In December 2019, for example, the Conservative
Party won their largest Parliamentary majority since 1987, while January of
this year featured the passing of the EU Withdrawal Bill through parliament.
With the recent cabinet reshuffle, and Sajid Javid’s resignation as Chancellor,
February has also proven to be an eventful month.
CEO and co-founder of FJP Investment: Jamie Johnson
However, in the period since the
election, there has been a growing sense that we have returned
to some semblance of normality. The three years after the referendum were
turbulent and hostile, with nail-biting parliamentary votes and overheated
political discourse becoming par for the course. With no election likely until
the middle of this decade, and with the Government in a relatively strong
position, this stress is seeming to subside. Whatever your political
disposition, this is no doubt a good thing for businesses and investors.
Data suggests that the UK stock market
grew by an impressive £33 billion in the immediate aftermath of the general
election. The effects of the so-called Boris bounce have likely been
overstated, but it has hasn’t been as short-lived as some had predicted.
Property also saw an uptick; according to Zoopla’s UK Cities Price Index,
demand for UK property rose at the fastest rate since 2017. Similarly, according to Nationwide, prices in January were at a 14-month high. This is especially
good news in light of modest house price growth in recent years as a result of
Brexit uncertainty.
Looking forward, then, the property
market could be set for renewed growth.
What can the Government do to propel
the property market forward?
As mentioned, following through on
their Brexit promises is crucial. Whether you voted remain or leave, 2019’s
missed deadlines created profound uncertainty amongst business leaders.
Therefore, it’s not just about the completion of the process, but also about
making sure negotiations go smoothly and businesses are being made aware of the
progress made.
The EU Withdrawal Bill passing through
parliament was an important first step. Indeed, it showed that this majority
has allowed Boris Johnson to get on with Brexit in a way his predecessors found
difficult. But the Government’s ability to tick all the other boxes during the
transition period is unproven. There is still a long way to go in terms of
reassuring the property market that Brexit is in safe hands and that investing
can continue without concern.
Furthermore, the Government must also
deliver on its previously stated aims for policy in the property space. The
domestic market, for example, is supportive of a new stamp duty surcharge on international
buyers of UK property — an approach the Conservative Party has previously
supported. According to a recent poll conducted by FJP Investment, as many as
70% of UK property investors are in favour of such a move.
There are also other areas that the
Government should follow through on to help realise the full potential of UK property.
Fighting the housing crisis, for example, will require coordinated policy to
encourage construction, investment, and stakeholder engagement. On that last
point, the Conservative Party has previously suggested consulting local people
on the design of new-build developments. Doing so would hugely increase the
attractiveness of such developments, so it’s little wonder that 68% of
investors surveyed by FJP Investment supported the policy.
The Government must also commit the
necessary resources to construction if it is to tackle the central challenge to
UK property: insufficient supply. More homes being built will almost certainly
bring prices down and make rents more affordable, but a national building
revolution, of sorts, may be required.
A recent promise of £100 billion for
construction over the next five years is a step in the right direction, while
Boris Johnson’s promise of a million new homes over the same period shows ambition
for UK property. But governments of all stripes have set, and missed, huge
housebuilding aims, and property leaders are tired of empty promises. Now is
the time for investment and reform to fulfil that huge target.
Looking forward, UK property appears
to be in a strong position. With so much latent demand, and with prices rising,
2020 is likely to be more positive than last year. Further, with Brexit likely
to be completed, the entire market may be set for an upturn. However, this can
only happen with the right government support and policy implementation —
indeed, without it, the housing crisis will not be resolved. Thankfully, the
Government’s aims broadly align with property investors’, meaning they likely
have the right priorities to help property return to form.
Jamie Johnson
is the CEO and co-founder of FJP
Investment
Nottinghamshire-based managed IT
services specialist Octavian IT has celebrated winning a plethora of major
projects by expanding into larger premises.
Managed IT specialist expands to larger premises following glut of major contract wins
The Cyber Essentials-accredited
company saw its annual recurring revenue increase by £78,000 over the last 3
months after snagging six prestigious contracts, several of which are with
companies operating in the security industry. 70 per cent of the Octavian IT’s
revenue now comes from highly-regulated, security-based industries.
The firm, which also recently added
three new recruits to its team, has now moved to more extensive offices in
Bingham as its rapid expansion continues.
One new contract valued at more than
£142,000 over 2 years will see Octavian install IT and phone systems and
provide ongoing 24/7 IT support and maintenance cover for a major London-based
security services provider. The London firm has recently built a bespoke 7
figure ARC (alarm receiving centre) in the Midlands to service UK and
international CCTV and physical security monitoring contracts.
Octavian IT also recently completed a
major project which involved moving the longstanding accountancy practice to a
new cloud-based centralised server system in Microsoft Azure, installing a
cloud-based phone system and facilitating and managing IT systems at the firm’s
new office in Twyning.
In addition, the cyber security
specialist has set up IT systems for a high-end US footwear brand’s new site in
London and will now provide full IT support to a London and Midlands-based
logistics group.
The new contracts add to Octavian
IT’s already-burgeoning client base, which includes four fully-contracted US
companies, two of which operate in the medical industry.
Octavian IT Managing Director Ben
Solomon said: “The past three months have been an exciting time for Octavian IT.
We have added three new members of staff tour growing team, increased our
revenue significantly and won six major contracts.
“We are continuing to make inroads
into the security sector, and recently became Cyber Essentials accredited,
which demonstrates our commitment to our own internal cyber security standards
and protection of our clients systems. We’re pushing now for the next phase
which is Cyber Essentials Plus, followed by the ISO standards.
“The speed and scale of our expansion
made it necessary to take larger premises, which we have now done. We’re now
looking forward to a busy and prosperous year ahead.”
Octavian IT is part of the award-winning multi-service provider Octavian Group.
Competition law and policy can help ensure open and accessible markets with fair and reasonable terms for businesses
Digital platforms are at the centre of the global economy and daily lives of consumers.
A handful of these platforms have become dominant in specific markets without facing meaningful competition. They include Amazon as a marketplace, Facebook in social networking, Google in search engines and Apple and Google in application stores.
Digital platforms rely on big data and are characterized as multisided markets with economies of scale, network effects and winner-takes-all features.
These firms offer their products for “free” on one side of the market and earn revenues from online advertising and selling user data on the other side of the market.
The growing market power of these platforms raises concerns not only for consumers and smaller businesses but also for competition authorities.
Consumers not in control
Consumers can no longer control the use of their data.
Smaller businesses face unfair market conditions, where they compete with big platforms that offer services by self-preferencing their own products. It is now widely recognized that these markets cannot self-correct.
What needs to be done?
One effective response is competition law and policy that promotes open and accessible markets with fair and reasonable terms for businesses.
This goal is more pronounced in highly concentrated digital markets, where large platforms’ market power is enduring.
The most important competitive threats to monopolists are likely to come from new entrants, which are vulnerable to exclusionary conduct or anticompetitive acquisitions.
Governments should have in place relevant policies and legal frameworks to overcome different challenges of the platform economy. These include competition, consumer protection and data protection policies and legislation.
Adapt to new realities
There is a need for adapting competition law enforcement tools to new business realities by revising laws like in Germany and Austria or issuing regulations or guidelines as has been done in Kenya and Japan.
A 2017 law revision in Germany incorporated in the assessment of the market power of firms in the digital economy such criteria as direct and indirect network effects, parallel use of services from different providers and switching costs for users.
It also factored in economies of scale in connection with network effects, access by firms to data relevant for competition and innovation-driven competitive pressure.
This amendment allowed the Federal Cartel Office in Germany to consider these criteria in analyzing Facebook’s dominance in the social network market during its investigation into Facebook between March 2016 and February 2019.
Merger control regimes should enable competition authorities to scrutinize the acquisition of start-ups by major platforms.
Merger analysis needs to incorporate the role of data in acquiring and sustaining market power and establishing entry barriers to new firms, thereby affecting future competition and innovation.
Not only free but also fair competition
It is important to ensure not only free but also fair competition. This is more so in digital markets, where smaller firms face challenges in their contractual relationship with big platforms.
Competition law provisions on unfair trade practices and abuse of superior bargaining position, as found in competition laws of Japan and the Republic of Korea, would empower competition authorities in protecting the interests of smaller firms vis-à-vis big platforms.
Developing countries could consider this policy measure in revising their competition legislation or introduce a separate regulation concerning digital platforms’ dealings with their business users.
Such measures could facilitate entry of local small and medium-sized enterprises (SMEs) to platform markets, thereby allowing developing countries to reap the benefits of the digital economy.
This is important as SMEs are crucial to job creation and innovation.
Both the implementation of fair competition legislation and review of acquisitions of startups by dominant platforms could play an important role in maintaining an inclusive, competitive and fair business environment in the digital economy. This might eventually enhance innovation.
Apt taxation policy needed
Another critical element needed to ensure fair competition is an appropriate taxation policy. A significant proportion of the value created in the digital economy results from users who provide data.
The current international corporate tax system is not adapted to the digital economy. There is not yet a common understanding of “value creation” for taxation purposes in the digital economy.
This leads to a disconnect between where value is generated and where taxes are paid. According to the UNCTAD Digital Economy Report 2019, taxes paid abroad by Facebook represented only 2.9% of the profits it generated outside the United States in 2017.
Ideally, an international taxation system, which is agreed upon by all countries, and recognizes the main aspects of digital businesses that have significant implications for taxation, should be put in place.
There are few business marketing practices that have stood the test of time
as well as free giveaways. Whether offering products or services, this arm of
advertising is popular for a reason. It gives customers a chance to get
something for nothing, and it gives a business an opportunity to illustrate
their strengths to the greater market. When done right, in many ways, it can be
a win-win.
With that that in mind, it’s also important to remember that this can be a
dangerous game. Making an avoidable mistake, or working without full
comprehension of the possible positives and negatives of a position, can put
both finances and reputations at risk.
When Should
Giveaways be Avoided?
One of the biggest issues with free giveaways is how nebulous the
results can be in terms of costs and benefits. Larger businesses might have
the ability to hire marketing firms or invest in research to accurately predict
the outcome of a free giveaway but, for small to medium-sized businesses,
such actions can be an impossibility.
To address this issue, it can be a good idea to look at the worst possible
outcome of a free giveaway, and check whether or not a bottom-line can afford
the hit. Imagine a struggling Ford garage offering incentive projects where
specific vehicles purchased within a set time-frame go into a draw to be fully
paid off by the dealership. In the worst-case scenario, no more cars would be
sold than usual, effectively adopting an enormous financial hit for zero real
monetary rewards.
Businesses also need to know that not all that glitters is gold, and not
everything that is offered for free is appreciated. While this is only one
aspect of the free giveaway game, it is one of the most fundamental features,
which even the biggest businesses can overlook.
Drawing the Line on Free Business Giveaways. Source: Pixabay
Take, for example, how Apple made headlines by giving away a free U2 album to iTunes users back in 2014. Apple saw this is a way to give people some of what everyone loved. Unfortunately for them, they vastly overestimated U2’s actual appeal. On top of this, the act of downloading the album automatically onto people’s devices used up room and bandwidth and messed with their shuffle functions.
In other words, just because you have the stock, doesn’t mean customers will
necessarily care. Instead of such a broad shotgun approach, it’s best to narrow
your sights to those who show informed interest.
When Should Free
Giveaways be Used?
The most important part of this question lies, again, with the potential
cost. Can a business afford the cost no matter the outcome? Then, and only
then, should the business continue with this plan of action.
In the modern age, free giveaways are used to draw attention to not just a
business as a whole, but also to a specific part of a business. This saw an
enormous take-off at the turn of the new millennium as businesses increasingly
turned to creating their own websites and, more importantly, online ordering
systems.
Drawing the Line on Free Business Giveaways. Source: Pixabay
Online
ordering and interaction systems are an enormous boost for businesses,
in that they free up man-hours for staff, they can handle much more traffic
than direct human interaction can, and they can operate 24/7. In these instances,
free giveaways tied to online ordering systems could create unprecedented leaps
in productivity. Walmart was one such example of this, where already legendary
convenience was raised to an entirely new level.
More recently, this has taken the form of mobile-focused ordering systems.
As more users turn to mobiles for internet use, this has again pushed for fresh
illumination. Again, smaller free promotions can drive engagement, and can help
spread word of mouth. This can be especially useful for businesses offering
smaller goods and services, as they won’t have to eat significant costs. This
might not matter so much for Walmart-sized franchises, but it will for almost
everyone else.
Another method, as utilized by some businesses, is to extend already common
bonuses one step further. For example, some businesses, such as online casinos
for example, have long
offered deposit matches as bonuses for new users, to the point where these
are usually standard. New casinos, trying something different, turned
to giving away no deposit bonuses, effectively one-upping the competition.
Of course, this particular industry can protect itself from what is known as
wagering requirements, but the general concept of one-upmanship can still apply
to a wide range of other markets.
Looking From Inside
and Out
Measuring when a free giveaway is and isn’t worth the effort means walking a
balancing act. What works for one industry or business might not work for
another, even if the two are nearly identical. Because of this, the most
important part is not to get lazy, and not to make assumptions on what will
work.
By taking a step back from the industry, and doing individual research on
what customers want, it can be possible to gain a much clearer picture. Work
for success, but protect against failure. Try something new, but observe
what others have done that worked and didn’t. Remember that there is no easy
solution, but performed at the right place and the right time, a free giveaway
can be a business-saver.
Jet Propulsion Laboratory Becomes The Latest
Customer of Pentana Audit
Leading global provider of governance,
risk and compliance software, UK company Ideagen Plc, has signed a long-term
contract with California-based constructor and operator of planetary robotic
spacecraft, Jet Propulsion Laboratory (JPL).
Founded in the 1930s, JPL is a federally funded research
and development centre managed for NASA by the
California Institute of Technology (Caltech). The lab’s current major projects
include the Mars Science Laboratory mission (which includes the Curiosity
rover), the Mars Reconnaissance Orbiter and the Juno spacecraft orbiting
Jupiter. JPL is also responsible for operating NASA’s Deep Space Network.
Ideagen has a close relationship with the
US Institute of Internal Auditors, which means companies using the Pentana
software have the comfort of knowing their audits are being done to the
standards expected by the Institute and comply with the guidance it issues.
JPL operates in a highly sensitive and
regulated environment and the need for security and top-quality governance
processes is paramount. Ideagen’s Pentana Audit solution offered the lab the
benefits of leading software together with the flexibility of both cloud-based
and on-premise data storage options.
Colin Smith, Head of
Sales, Audit & Risk at Ideagen,
commented: “Companies are placing increasing importance on compliance and good
governance, driven in part by some very high-profile failures of governance by
large organisations in recent years. Ideagen’s Pentana software is tried, tested
and ensures internal audits are carried out to the standards expected by the US
Institute of Internal Auditors.
“JPL are dealing with incredibly
complicated and potentially life changing endeavours. We are extremely proud to
have been chosen by them and look forward to helping to ease their burden when
it comes to the audit process.”
UK,
29 January 2020: easyJet, Europe’s
leading airline, has announced the renewal of its long-standing content
partnership with Travelport, a leading technology company serving the global
travel and tourism industry.
In partnering with
Travelport, travel agencies around the world will continue to benefit from
real-time access to easyJet’s range of fares through the company’s market-leading
technology platform, Travelport Smartpoint.
easyJet will also
benefit from access to the full suite of Travelport’s digital media
merchandising solutions in line with the airline’s strategy to refine and
diversify the way it targets business and leisure travellers.
Thomas
Haagensen, Group Markets Director at easyJet, said: “easyJet offers an unrivalled network flying to more primary airports
on the top 100 European routes than any other carrier which means we are
ideally placed to meet the expectations of where our customers want to fly for
business. Having been one of the first airlines in the low-cost sector to make its
inventory available through global distributor, Travelport, we continue to
deliver on our strategy to increase our appeal, especially to the business
travel sector and are pleased to have renewed our partnership.
easyJet will remain
among the 300 airlines that utilise Travelport’s innovative merchandising tool,
Travelport Rich Content and Branding. Travelport Rich Content and Branding enables
airlines to more effectively display their products in line with how they are
sold on their own websites, with detailed product descriptions and imagery that
enhances the experience for travel agents looking to search, sell and book
branded fare families.
Mike Rock, Head of Europe, Air Partners at Travelport,
said: “The way that business and leisure travellers make travel choices continues to
evolve and diversify as new and emerging technologies, and industry standards
improve the experience of buying and managing travel. Our longstanding
relationship with easyJet has enabled the airline to develop a multi-channel
global sales strategy and we’re looking forward to working with the team to
support its ambition for growth in Europe and beyond.”
A new crypto asset regulation drafted and passed by the House of Representatives in Japan is expected to have a serious effect on the way custodians and exchanges do business in the country. The Financial Instruments and Exchange Act and the Payment Services Act is set to keep a keener eye on players in the crypto industry at a time when the crypto gambling industry in Japan is fighting through already restrictive gaming regulations.
Joseph D. Hugh is the CFO of Jukebucks, a platform that facilitates international cryptocurrency betting. Hugh says the strict regulations Japan has regarding gambling, in general, has been passed over to the crypto gambling industry. Hugh explains it is not an easy thing for the country to completely deny players access to the gambling industry, but Japan keeps tabs on players under the pretense of tax monitoring.
Despite the restrictions that exist in Japan, lawmakers in the country agreed a little more than a year ago to allow physical gambling locations in the country.
Hugh says Japan will begin allowing offline casino betting in the country following the 2020 Olympics. He says it is unclear at this time what business entities may be in line to receive casino licenses but these permits will be issued for casinos in Osaka, Tokyo, Hokkaido, and Okinawa. It is presumed by experts in the industry, Japan will lessen restrictions on online casino play in the country after the offline industry is established.
The “integrated resorts” stamp of approval was given by the Japanese government some time ago but the effects have yet to trickle down to the gambling industry.
Integrated resorts are entertainment complex that showcases a comprehensive set of entertainment venues. Casinos are often counted among the group of business establishments part of an integrated resort. Other attractions include shopping malls, movie theaters, theme parks, and hotels.
Japan and Prime Minister Shinzo Abe have appeared to be more willing to introduce legislation to benefit casinos in recent times. However, this enthusiasm does not seem to translate to crypto gambling possibilities.
Japanese Crypto Gambling
One would think that crypto gambling is much more prevalent in Japan than it is once taking a look at the abundance of regulations the country has put together on the matter. Much of the regulation is seen as a response to the 2014 collapse of the crypto-exchange Mt. Gox that was headquartered in the country.
Tron is a blockchain network that reports it is working on the infrastructure that will facilitate a completely decentralized internet. In 2019, Tron disallowed gambling apps in its app store after being pressured by the government of Japan to do so.
The Chief Technology Officer for Tron at the time of the decision to block the gambling apps, Lucien Chen, was so upset by the decision he left the company. Chen said there was a breakdown between the company’s claim to be a decentralized entity and the actions it was taken against the gambling apps.
How It Works?
There are two ways that blockchain gambling can take place. The first is off-chain gambling while the other is on-chain.
Off-chain gambling takes place whenever physical gambling locations like casinos agree to accept cryptocurrency as a form of gambling currency used to deposit into a casino account. A third-party custodian is then used by these establishments to convert cryptocurrencies into fiat money. However, casinos do exist that operate completely on Bitcoin and do not make use of fiat currency.
Smart contracts are utilized on a blockchain to facilitate on-chain gambling. A decentralized application is also needed that makes use of backend code that runs on a network for blockchain and not a traditional server.
Off-chain casinos are much easier targets for governments who wish to either regulate or eliminate crypto gambling. Websites that allow crypto gambling will often ban IP addresses that originate in certain countries. For example, users in America will find they are unable to access gaming sites that accept Bitcoin from their home location.
It is important to understand that on-chain gambling sites are not completely immune from government regulations. A good example of this is Tron’s refusal to share access to its gambling apps to users with Japanese addresses. However, the same users can access the apps if they use a VPN.
Global Crypto Gambling Regulations
The regulations most countries have in place to govern gambling that takes place online have been in place for quite a few years now. However, only a few countries have so far specifically addressed the issue of crypto gambling. Countries that have established crypto gambling regulations include the Netherlands, the United States, Poland, Greece, Belgium, and Italy.
In countries that do not consider Bitcoin a legal method of pay it is not acceptable to fund gambling efforts with the currency. However, lawmakers in these countries will need to make the regulations regarding this matter clearer for gamblers, casinos, and themselves.
Japan, a nation whose gambling revenue slightly outpaces the revenue produced by Nevada in the United States, is one of these countries in need of better clarity.
A number of online gambling platforms exist in the United Kingdom that will allow players to fund their accounts with Bitcoin. These providers of gambling services are subject to the same laws that govern the operations of other establishments in the gambling industry. Sportsbetting is popular in the United Kingdom and this is reflected by the number of sports betting websites available that allow users to place wagers using cryptocurrencies.
Gamblers are quick to point out the benefits afforded to them by the use of bitcoin. The first is privacy. Users are not required to reveal personal information when they use Bitcoin to facilitate a transaction. Bitcoin does not allow for total anonymity, however. Most countries make it necessary for individuals to share their identity before converting their Bitcoin to the fiat currency of their choice.
Coins like Zcash and Monero are not as popular as Bitcoin but offer users more protection to their identity. These coins are known to thwart attempts by regulators to gain access to personal information regarding coin holders and many supporters of regulations believe tighter controls should be exercised on these coins.
It may not be obvious to some who abhor the many regulations in place but the global gambling industry is slowly becoming more accepting of cryptocurrency. The effect can even be seen in Las Vegas, a place many believe to be the gambling capital of the world, where Bitcoin is being accepted in a few major establishments. The trend of increased acceptance for cryptocurrencies is expected to increase with time.
