Exchange warning about using crypto for gambling

[nakisama]

This happened to me this week.

Am a sports gambler for many years, I know, it is a vice but my only one and I gamble with my hard-earned money.
This week I received a warning from a big exchange about the fact that I deposited fiat and immediately withdrew to a gambling site.
Well, I have been doing this as well for many years and so far there was no complain from their side.

I am fully KYC'ed with the exchange for some years, they know how much I earn per month and they can easily see that deposited amounts are within my means.


I went checking the terms and conditions and it is true that they do mention internet gambling as one of the prohibited activities.
Thing is, gambling is allowed in my country of residence.
Plus, the gambling sites I use are big known names, with valid licenses, not shady casinos.

Have to be careful now so it seems as for sure I will be monitored thoroughly now.

Did this happen to anyone else?

Would using an intermediary wallet to receive gambling funds be the solution?

[dunfida]

Did this happen to anyone else?
It didnt happen to me because since from the beginning im that really very cautious on trying out to make some violations on every site/platforms/services that im using.
This is why they do have that terms and conditions in the first place on which for people to read up on what are the prohibitions that they do set out and for you to be able to avoid such problems.

Would using an intermediary wallet to receive gambling funds be the solution?
This is the solution for this one if you dont like for that exchange account to be locked due to violation of their terms and conditions. We do have that tons of specific wallets out there on which
you can make use on when trying out to deposit into your exchange account.

Good thing that they do still give you a warning in regarding into that manner and didnt locked up your account immediate just because of that violation. They might not be able to
lock you up earlier and you do sees out that its fine by them but now that they do notice it out already then its safe to assume that you have been monitored. If you dont like
to experience such potential headache then that top solution will be your best shot.

[Lida93]

I went checking the terms and conditions and it is true that they do mention internet gambling as one of the prohibited activities.
Thing is, gambling is allowed in my country of residence.
Plus, the gambling sites I use are big known names, with valid licenses, not shady casinos.

Maybe it's time you start looking to use exchanges that has no prohibition against gambling platform because I don't think this particular exchange you talking of will send you another warning message again before they take action that you wouldn't feel comfortable with.

This why it's important as gamblers we check ToS of the exchange we use about what their terms are towards withdrawal and deposits in and from gambling platforms so we don't lose our funds out of ignorance.

[mcdouglasx]

Your exchange operates in countries where this is prohibited or monitored. Although in your country you are not violating any laws based on what you said, you are breaching the rules of your exchange service, which will eventually become a problem for you. It may be time to use an intermediary between your betting platform and the exchange, as you have mentioned. Otherwise, you could go from a simple warning to having your funds confiscated, so it is always better to prevent than to regret.

[Davidvictorson]

Maybe it's time you start looking to use exchanges that has no prohibition against gambling platform because I don't think this particular exchange you talking of will send you another warning message again before they take action that you wouldn't feel comfortable with.

This isn't even a question of maybe. He has to stop using that exchange completely for anything and move to another exchange. This time, he should thoroughly read their terms of service to avoid getting into a similar situation again. On a personal note, I have been using a particular exchange for my gambling activities and not once have I received any message from them about my gambling maybe I have to check their ToS first.

[Findingnemo]

It's not a problem as long as it's from exchange to gambling site and it is not prohibited but what is prohibited is depositing funds from casino to exchange which can leads to account suspension/termination. So if you did in the past then just keep using the account as long as they allow you to because the termination can happen on random with no prior warnings.

And using intermediary wallet is not enough, the exchange can go and track the origin to a few layer as part of AML procedure.

[Ndabagi01]

I went checking the terms and conditions and it is true that they do mention internet gambling as one of the prohibited activities.
Thing is, gambling is allowed in my country of residence.
Plus, the gambling sites I use are big known names, with valid licenses, not shady casinos.

Have to be careful now so it seems as for sure I will be monitored thoroughly now.

Did this happen to anyone else?

Would using an intermediary wallet to receive gambling funds be the solution?

I feel this post is better suited in gambling discussion board than trading discussion.

It is just a warning that you’re breaching their terms and conditions and if you want your funds not be confiscated, then you have to stop breaking their ToS. You are lucky that you’re not penalized for all the times you’ve breached their times. If you want to continue funding the gambling site, then use another means to do that and not through the exchange you’re using now which sees it as a violation of terms.

[Potato Chips]

I've heard two side of the coins. Gamba folks whose accounts were flagged and those who are not—from exchanges which prohibit gambling using in their terms of service. Essentially, I think it could be a hit or miss as there is no trigger system with 100% accuracy especially if you do address hopping.

But I'd say the solution is to find an exchange which doesn't prohibit gambling usage under their terms of service. Otherwise, you'd be living your life on the edge wondering which transaction will be flagged or nah. And if they flag it, it will most likely be a nightmare for ya.

[sheenshane]

I went checking the terms and conditions and it is true that they do mention internet gambling as one of the prohibited activities.

This was your mistake, you should have practiced checking the ToS first before using the site to avoid similar problems in the future.  I'm also aware that there are exchange platforms strictly prohibited from linking transactions to gambling casinos because these exchanges rely heavily on relationships with traditional banks, payment processors, and regulators.  By distancing themselves, exchanges protect their financial ecosystem and their partnerships with government entities.

Fortunately, for that first warning, you now know that it's against their rules.  So you can simply avoid it if you want to steer clear of trouble.  Not only on an exchange, but also you must be careful in using a centralized wallet like a local wallet.

[Ziskinberg]

You already know the problem.. the exchange doesn’t allow gambling, so you need to avoid letting them see that your crypto is coming from or going to a casino wallet.

The best way is to use a wallet that supports CoinJoin or similar privacy features. That helps keep your transactions private, and the exchange won’t see the direct link unless they do a deep investigation using blockchain analysis, which is unlikely for regular users.

[passwordnow]

Did this happen to anyone else?

Yes, this did happened to many members here and that's why we're all aware about this rule of exchanges that don't withdraw and deposit funds incoming and outgoing to a casino.

Would using an intermediary wallet to receive gambling funds be the solution?

Yes, use a wallet that's just from the desktop wallets or any other wallets that you have. No association with a casino or what not.
So you do this instead, exchange <--> personal wallet <--> casino.

[stadus]

Just because you’ve been doing it for years doesn’t mean it won’t become a problem. Keep in mind that laws can change over time, and exchanges are regulated, so they have to follow the rules.

You’re actually lucky you’re just getting a warning.
Some exchanges might just shut down your account right away since it's already stated in their terms.

So it’s important to act now. Avoid sending money directly to or from a casino wallet. The safer option is to use a mixer, it might be a bit costly, but if the exchange allows it, it’s a much safer route to protect your account.

[EL MOHA]

Have to be careful now so it seems as for sure I will be monitored thoroughly now.

Did this happen to anyone else?

Would using an intermediary wallet to receive gambling funds be the solution?

The thing is some exchanges have actually put gambling platforms or big casinos in this same category as mixing platforms and they usually tag funds coming from those platforms into the exchanges as tainted exchanges as they believe that people who move funds through this platforms simply just want to mix their coins and nothing more. Since you saw the prohibition on their exchange I will advice you don’t ever move any coins from that exchange to any gambling platform as it would the confiscated coins and you might lose them. Best thing is to have an intermediary between the two platforms which is send to a custodial wallet first and then move to anywhere of your choice.

[OcTradism]

Am a sports gambler for many years, I know, it is a vice but my only one and I gamble with my hard-earned money.
This week I received a warning from a big exchange about the fact that I deposited fiat and immediately withdrew to a gambling site.
Well, I have been doing this as well for many years and so far there was no complain from their side.

Centralized exchanges don't care where you withdraw your money too, if I am right they only care about your source of deposit. In other word, they care about origin of your fund that is sent to your account at their exchanges. That's it.

If their tools detect that your deposit origin has traces from mixers, tumblers, gambling sites or any source with sort of money laundering activities, they might pull their account suspension, termination or KYC card against your account. They might ask you providing proof of your deposit fund before they make final decision to release your account back to normal use or eventually terminate it.

Sanctioned Services and the service traceability to this forum, Any danger?
Be careful using Binance & Centralized Exchange

[slaman29]

Ya now almost all regulated exchanges (they have license so you know) will prevent this from happening. But it's not just gambling, basically, any site will do checks on anything, so even some exchanges won't like other exchanges, like if Luno detects you use Coinbase they get it all problematic.

To be on the safe side, always use your own wallet as a bridge.

Exchange/Casino/Mixer <> own wallet <> Mixer/Exchange/Casino

They don't care about the origin of the origin in this sense. Only the previous address used to deposit or sometimes even withdraw. @OrcTradism says they usually don't care about withdraw and this is true in most cases BUT your withdraw becomes a deposit on the other end, so always use your own wallet as buffer.

[Maslate]

Centralized exchanges don't care where you withdraw your money too, if I am right they only care about your source of deposit. In other word, they care about origin of your fund that is sent to your account at their exchanges. That's it.

It’s pretty obvious, when you withdraw from an exchange, the source of funds is the exchange itself, so there’s usually no issue there. But when you deposit to an exchange, that’s when they check where your funds are coming from.

They have systems in place, and they can detect if the funds came from a casino. So if their terms clearly state that gambling-related funds are not allowed, then we really have no choice but to follow the rules.

If we insist on ignoring that, we’re just putting our funds at risk of getting frozen.

[The Cryptovator]

If gambling legal on your country then why should you use an exchange to convert crypto and make deposits into gambling sites? Also, instead deposit directly to gambling platforms. What's the problem if you bring funds into your own address first and change a couple of addresses to break the link? You have to follow the exchange terms. Otherwise, you might be in trouble soon. Don't risk that exchange again; they track your address.

So breaking a transaction with gambling sites and exchanges is quite important. I face the same issue, though not with gambling sites, but it was related to mixers. So they froze my account with funds, though later they released my funds. So please avoid such a deal with exchange to avoid freezing your account.

[Mahanton]

I went checking the terms and conditions and it is true that they do mention internet gambling as one of the prohibited activities.
Thing is, gambling is allowed in my country of residence.
Plus, the gambling sites I use are big known names, with valid licenses, not shady casinos.

Have to be careful now so it seems as for sure I will be monitored thoroughly now.

Did this happen to anyone else?

Would using an intermediary wallet to receive gambling funds be the solution?

I feel this post is better suited in gambling discussion board than trading discussion.

It is just a warning that you’re breaching their terms and conditions and if you want your funds not be confiscated, then you have to stop breaking their ToS. You are lucky that you’re not penalized for all the times you’ve breached their times. If you want to continue funding the gambling site, then use another means to do that and not through the exchange you’re using now which sees it as a violation of terms.

Good thing that he was given a warning rather than on completely being that banned or locked up that account on which considering that he's been long time making use or having that behavior on directing out crypto gambling withdrawal to exchange deposits on which this is always been that a violation of terms and conditions. We do know that majority of these exchangers are similar when it comes to terms and conditions on which its safe to say that they wouldnt be wanting nor allowing direct deposits that came from with these services on which mainly including gambling or casino sites. We do know that these businesses are regulated on which most of them share up with that default terms and conditions. Just like on what been said that he's still lucky that he hadnt been that locked up immediately and given up a second chance. Now that he had already been that giving out some notice then it do simply shows that he's that needing up to adjust and stop out on making deposits directly from the gambling site if he do wishes up to continue to make use of his exchange account or else if he would be deciding to continue on what he had been doing then we do know on what would happen next. Exchangers might not be able to notice it out due to number of users that needs up to be that monitored but sooner or later once those regular checks be done or trying out to check the system then time will come that you would be noticed out and just like on this one. Its a good thing that they do give out some warning instead on applying out the immediate actions or consequences since you have violated their terms. Thats a good consideration from the exchange and at least given up op some chance to change.

[nakisama]

thank you for your perspectives, very good insights.

Thing is I cannot be sure that the exchange themselves did not update the terms and conditions throughout the years since I joined them to include these conditions (yes, fault on me for not checking, I know)

So, where do they draw the line?
As said gambling is allowed in my country.

I cannot use USDT or none of the leverage products (due to Mica regulation in europe), but the exchange still allow USDT to non-europeans.
People like to use whatever they want with crypto, investing in meme coins such as TRUMP coin, for me that is worst than gambling.
Reason why I prefer these instead of fiat sportsbooks is all about settlement, I can immediate withdraw and receive funds in my account/wallet, isn't that reason enough?
I hate banks but we cannot leave without them, even worse ECB will get us all "digital euro" in October which surely have restrictions in place (such as not allowed to use funds for gambling)

[Aanuoluwatofunmi]

This happened to me this week.

Am a sports gambler for many years, I know, it is a vice but my only one and I gamble with my hard-earned money.
This week I received a warning from a big exchange about the fact that I deposited fiat and immediately withdrew to a gambling site.
Well, I have been doing this as well for many years and so far there was no complain from their side.

I am fully KYC'ed with the exchange for some years, they know how much I earn per month and they can easily see that deposited amounts are within my means.


I went checking the terms and conditions and it is true that they do mention internet gambling as one of the prohibited activities.
Thing is, gambling is allowed in my country of residence.
Plus, the gambling sites I use are big known names, with valid licenses, not shady casinos.

Have to be careful now so it seems as for sure I will be monitored thoroughly now.

Did this happen to anyone else?

Would using an intermediary wallet to receive gambling funds be the solution?

Don't mind them, exchanges have the highest risk than using a gambling platform, since we have our entire hard earned money with them and they are custodial wallet, our assets on them are not safe, if anything happened to them, we are completely gone with our money on them, why should they also warn about gambling, this is a big question I still can't understand why they are placing demand of such, though if they ask you not to, then try not to do so, it's either you change the exchange or use a non custodial wallet for your gambling.