As the relationship between digital currencies and igaming continues to evolve, LeoVegas’ Manager of Strategic Payments Projects, Fredric Hellsten, underlined that whilst “cryptocurrency as a payment method has made significant steps forward, it faces challenges and hasn’t reached its full potential as a mainstream payment option”.
During an interview with Payment Expert, Hellsten pinpointed volatility as one of the key barriers halting operators from fully engaging with cryptocurrency as an alternative payment journey.
He warned: “Frequent price fluctuations can lead to financial losses, causing hesitation in spending or accepting cryptocurrencies. This instability hinders cryptocurrencies from becoming a reliable payment method. However, there are suppliers that have developed various tools to mitigate volatility in different ways.
“Adoption is closely tied to regulatory uncertainty and technological barriers. Regulatory environments vary significantly by country, creating uncertainty and potential legal challenges for both users and businesses. The underlying technology of cryptocurrencies can be complex for the average user which adds additional barriers to understanding and effectively utilising these digital assets.
“Despite growing acceptance, cryptocurrencies are not yet widely adopted by mainstream businesses which limit their usability as a payment method and making adoption one of the primary challenges.”
He also underlined that the complex regulatory frameworks around cryptocurrencies can present challenges, as the lack of clarity in many markets leads to increased challenges.
This can also elevate the exposure for players that are tentative when it comes to embracing cryptocurrency. Hellsted described the regulation of crypto as “crucial” if it can widely be deemed as a reliable payment method.
He said: “Proper regulation ensures consumer protection by safeguarding against fraud and other malicious activities and by building trust and encouraging more people to use cryptocurrencies as payment. It also provides the tools to resolve disputes which is vital for consumers to feel safe using cryptocurrencies.
“Regulation contributes to market stability by curbing speculative trading and reducing extreme price volatility, making crypto more suitable for everyday transactions. It also helps prevent market manipulation, ensuring fair trading practices and a more stable market.
“AML and KYC regulations are essential to prevent crypto from being used for illegal activities, such as money laundering and terrorism financing, exactly like when we use fiat currency. Proper regulatory oversight ensures transparency and traceability in transactions and maintains the integrity of the financial system.
“Businesses are more likely to adopt cryptocurrencies as a payment method if they are confident in their compliance with legal requirements because it reduces the risk of legal repercussions and financial penalties.
“Without proper regulation, the risks and uncertainties associated with cryptocurrencies can undermine their potential as a mainstream payment option. That is why developing clear and effective regulatory frameworks is essential for the broader adoption and acceptance of cryptocurrency payments.”
The Payment Expert Summit, part of the upcoming SBC Summit, will be held at the Feira Internacional de Lisboa from September 25-26. Secure your spot with the Early Bird ticket offer, which provides access to all three core days of the event, including the exhibition floor, conference sessions and evening networking parties, all for the discounted price of just €400.
