One of the biggest challenges for iGaming operators when it comes to accepting cryptocurrency payments is complying with regulations.
Regulated operators often face higher hurdles compared to their unregulated counterparts. The reason is simple: the latter can innovate more easily. Unregulated operators take advantage of legal loopholes or even act illegally.
This situation leads to a missed opportunity for growth, hindering the potential of the regulated industry.
At Clovr Labs, we understand that security and compliance are essential for regulated operators. That’s why we have worked intensively and intentionally to design ElenPAY, a solution that not only facilitates Bitcoin payments, but also ensures that every transaction complies with current regulations.
Innovative approach to Bitcoin payments in iGaming
This is all you can expect from our Bitcoin payment tool ElenPAY:
- KYC (Know Your Customer): To guarantee user identity.
- Internal profiling and user intelligence tools: To detect and prevent fraud.
- KYT (Know Your Transaction) and AML (Anti-Money Laundering): For transactional monitoring, analysis and money laundering prevention.
- Comprehensive volatility coverage: Through specialized external providers.
How we address regulatory challenges in iGaming
Before going into detail on ElenPAY’s product flow, it is important to understand the regulatory challenges in iGaming.
Gambling with cryptoassets is legal and allowed as long as two conditions are met:
- That the jurisdiction allows online gambling.
- That the jurisdiction has recognized cryptocurrencies as legal tender or allows their use as a unit of account.
The reality is that there are few jurisdictions that meet both conditions. It is therefore natural that regulated operators are reluctant to accept Bitcoin payments.
However, this does not mean that they cannot use tools such as ElenPAY.
To help overcome these challenges and offer the innovation and opportunities of Bitcoin to regulated operators ready to take the plunge, we have designed ElenPAY to function as an “exchange”. This means that ElenPAY converts Bitcoin to fiat currency so that traders don’t touch or see crypto, but can accept it as a method of payment.
ElenPAY product flow step by step
Now, let’s take a detailed look at how ElenPAY’s product flow ensures that each transaction complies with iGaming regulations:
1. Player Deposit Request:
The player initiates a deposit request in fiat money, selecting from several payment options. When selecting Bitcoin or Bitcoin Lightning, they can use their Bitcoin for the deposit, but it will be automatically converted to fiat money. On the platform, they will only operate with fiat money.
2. KYC (Know Your Customer):
Although this is something the operator should already have implemented, ElenPAY can optionally offer user identity verification.
3. Invoice Generation:
ElenPAY generates an invoice for the transaction that can be scanned with a QR code, copied and pasted, or opened in the user’s cryptocurrency wallet on their device.
4. User Profile Analysis:
Before completing the transaction, our internal tools analyze the user’s profile. This is also optional. We do this to detect customer typologies that help the operator offer a more personalized experience.
5. Transaction Confirmation:
Once the transaction is successfully completed, the payment is marked as completed and the player can start operating on the platform with their fiat money converted from Bitcoin.
6. KYT (Know Your Transaction), AML (Anti-Money Laundering), and Anti-Fraud:
Our internal KYT and AML tools monitor the transaction to ensure the money does not come from illicit activities, ensuring regulatory compliance. Additionally, we offer anti-fraud monitoring for bonus abuse and collusion. The operator is notified of transactions with a high-risk percentage. Those transactions confirmed as fraudulent will be frozen and reported to the competent authority.
7. Volatility Coverage:
The balance in the operator’s account is always shown in fiat money. Behind the scenes, the deposited Bitcoin maintains its conversion thanks to the use of hedging. This not only avoids Bitcoin volatility but also complies with jurisdictions that do not allow operations with cryptocurrencies.
8. Settlement Request:
While the player operates on the platform, the balance remains in the operator’s account, always displayed in fiat money. The operator can request a settlement from their balance at any time, transferring the fiat currency funds directly to their bank account.
Accept Bitcoin payments in a regulated and secure way.
Bitcoin is here to stay, and ElenPAY offers a comprehensive solution for regulated iGaming operators to accept payments in the most widely used cryptocurrency in a secure and compliant manner.
With ElenPAY, operators can compete on a level playing field with their unregulated counterparts, unlocking new opportunities for growth in the industry.
If you are a regulated iGaming operator and want to innovate with Bitcoin, contact us and ask for a personalized demo of our platform. Offering Bitcoin payments in a regulated and secure way has never been easier, and we want to help you implement it.
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