Integrating crypto with gaming: Cal Evans explores risks and rewards
Cal Evans, Managing Associate at Gresham International, weighs the risk and reward in integrating cryptocurrency in gaming.
In his keynote speech at the BIS SiGMA Americas being held in São Paulo in Brazil, Evans emphasizes crypto and gaming’s shared appeal and global accessibility challenges.
“Let’s be realistic. When we talk about gaming, some people would love access to that. It is very easy to think about where we live in our respective parts of the world, we take it for granted,” he said.
“And then, the same is true [with crypto]. There are parts of the world where we take for granted being able to walk into a bank and open a bank account,” Evans said. “It is estimated that a quarter of the people in the world have no access to a bank account.”
Evans is a multi-award-winning digital asset lawyer shaping the future of crypto, NFTs, and Web3. He also holds a patented crypto technology and is the author of the book Little Book of Crypto.
Capitalizing on opportunities amid regulatory complexity
While acknowledging the promising prospects, Evans cautions against regulatory hurdles. He stresses the importance of Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, emphasizing that both are “huge things for anybody working in the digital asset space.”
Streamlining financial operations in gaming
Addressing transactional complexities, Evans discusses the timing issue inherent in crypto transactions. Evans emphasizes the necessity of efficient collection methods and volatility management. He, however, details the issues faced by casinos with cryptocurrencies.
“The reason everybody doesn’t jump on crypto is because there’s a practicality implementation issue. There is an issue with putting crypto in a casino,” Evans said. “It is called the timing issue.”
“If I send my Bitcoin to a casino or a game, game of chance, games of skill, games of risk, it doesn’t matter. Let’s see how many rotations of the roulette wheel. Let’s see how many spins of the dice we can get. Let’s see how many cards we can draw. That’s the money. But the problem is crypto doesn’t work like that,” he explained.
Evans also highlighted the importance of regulating digital assets and for firms to obtain proper licences.
Navigating regulatory frameworks with strategic insight
Evans underscores the need for a nuanced approach to compliance amidst evolving regulatory landscapes. He acknowledges the challenges, stating that the convergence of gaming and cryptocurrency poses intricate regulatory considerations.
“It should be worth your time and should be easy enough to plug into your existing framework. If you are a smaller provider in the industry, it is probably not worth the time. If you are larger, it does give you the ability to attract and retain new clients,” he concluded.
