FinTelegram, in its ongoing efforts to shed light on the complexities of the crypto casino industry, has recently spotlighted the operations of Curacao-licensed crypto casino Gamdom. It has been soliciting players in the EEA without the necessary regulatory approval, accepting payments in a manner that may raise eyebrows among regulatory watchdogs. Bitinvestor is one of the payment facilitators for the crypto casino.
Gamdom Facilitator Gamdom
FinTelegram’s report revealed Bitinvestor, a Denmark-based cryptocurrency exchange, as one of the payment facilitators for Gamdom. This association has prompted PayRate42, a prominent cyber rating agency known for its meticulous evaluation of payment processors, to scrutinize Bitinvestor‘s compliance protocols and operational standards.
From FinTelegram’s perspective, the analysis of the Curacao-licensed crypto casino Gamdom reveals three problem areas:
- on the one hand, the Curacao license does not automatically entitle the provider of its online casino and gambling services to offer it in regulatory regimes of EEA countries (and other jurisdictions). This is also an issue for facilitating payment processors.
- On the other hand, processing deposits via crypto entails considerable risks for players, especially with regard to possible chargeback claims. For example, players purchase cryptocurrencies via Bitinvestor in step 1 (transaction #1), and these are then automatically forwarded to Gamdom for gaming purposes (transaction #2). This makes chargeback claims difficult or even impossible.
- The sale of cryptocurrencies by an EU-regulated crypto service provider to a Gamdom player in the first transaction step hides the fact that it is actually a deposit by the player to an unauthorized offshore casino.
We are seeing this construction with crypto deposits more and more frequently and see this as an issue for regulators to clarify.
PayRate42 Compliance Concerns
PayRate42‘s investigation into Bitinvestor reveals a concerning scenario. Despite Bitinvestor‘s claims of prioritizing secure and compliant transactions for the buying and selling of cryptocurrencies, PayRate42’s findings suggest a significant compliance shortfall. Thus, Bitinvestor has received an Orange Compliance rating on PayRate42‘s compliance scale, indicating concerns regarding its role in facilitating transactions for unregulated offshore online casinos like Gamdom.
While Bitinvestor‘s association with Gamdom and other similar platforms may be seen as a strategic move within the crypto casino sector, it is imperative for all stakeholders to recognize the broader implications. Compliance gaps and the facilitation of unregulated gambling activities not only pose legal and financial risks but also threaten the integrity and security of the financial ecosystem.
Bitinvestor Key Data
| Trading name | Bitinvestor |
| Business activity | Crypto Service Provider |
| Domain | https://bitinvestor.net |
| Social media | |
| Legal entity | Bitinvestor ApS |
| Jurisdiction | Denmark |
| Authorizations | Regulated as CASP by Danish FSA Registered as MSB with Canadian FinTRAC |
| Related individuals | Thomas Franklin (LinkedIn) Jonathan Bau (LinkedIn) |
| Trustpilot | 4.8 stars with “Excellent” trust level |
| PayRate42 rating | Orange Compliance (PR42 profile) |
| Known clients | Gamdom |
Share Information
If you have any information about Bitinvestor, its actors, and its activities, please let us know via our whistleblowing system, Whistle42.
