Exchange warning about using crypto for gambling

[GreatArkansas]

I heard one local exchange like this from our exchange, like if your outgoing transaction is worth more than $900 USD, they are asking for some information and putting the transfer on hold, like some information about who the receiver is, etc. I haven't tried this yet, but more likely the same with your case.

I think using an intermediary wallet that you own is a good idea as long as they have already sent it, and they are already safe, but your account could be in danger if they still care on the funds after you transfer it out from the intermediary wallet.

I only think of concern about origin of your deposit fund that is more important for centralized exchange to have good AML enforcement on their exchanges.

They only need to consider about a withdrawal if a receiving address is well known as from a mixer, that is the only case I think possible for triggering their AML bot with withdrawal. For withdrawals to non minder addresses or non sanctioned address, there is no reason for asking such question rather than intention to scam users through AML card.

This makes our life easier and is the true essence of using cryptocurrencies. To be honest, these centralized exchanges also hate this, but the only problem is the government authorities, where they required for sure these centralized exchanges to comply to avoid and prevent these criminal activities.

[mirakal]

I had an experience before in my local exchange where my account was frozen because I sent funds to a gambling site. I haven't thought it was wrong, and even checking their rules did not there. So I wonder when their support will send me a message about the issue and a certain violation. Reading their rule is quite important. We'd be more careful because many exchanges are strictly implementing this. Even if it was not mentioned in their rules, it is much better not to send it directly to any gambling site.

[gunhell16]

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?

In the first place dude, you already know that it's in their terms and conditions that it's forbidden but you still did it. why? because it's been several times that you've been able to transfer without any problems for a while that you've been doing it on their exchange so you still continued and ignored their terms and conditions? Maybe they just didn't notice right away or maybe you've reached their withdrawal limits accumulatively so that's why you noticed.

So the mistakes are yours not theirs, because they know that it's forbidden but you still did it, so you should expect that anytime they can really do
the thing you don't want but you still did it, you get it.

[knowngunman]

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.

Funny how you and the first two replies talk about reading the exchange term of service knowingfully well that majority of us don't care about reading the terms and conditions of the platforms we use daily. This is not just about the exchange but including the gambling platforms we use to pass time. The bold part in your post shows that you haven't read the terms of service of the gambling site you use and you aren't even sure of reading it yet. Unfortunately, we give our consent and agreed to this unknown terms just to proceed and complete our registration on the platforms and this means we have no excuse.

The best thing for Op is to abandon the exchange if he wants to continue gambling using that method of funding his gambling wallet through exchange or he should stop using the exchange to fund his gambling wallets if he wants to continue using the exchange since he's fully KYCed. The exchange was very fair with him for even sending him a warning about terms of service violation.

[goldkingcoiner]

OP, if you would have googled it, you would see that quite a fair amount of users complain about having problems with withdrawing or depositing funds from or to a gambling platform. Some users recommend using an in-between wallet because all the exchange seems to care about is plausible deniability, and they seem to believe that they do not care as long as the funds are not directly connect wallet to wallet.

Although I personally have no experience with this and cannot give you any advise except to stay away from any and every CEX (centralised exchange).  

[Webetcoins]

Gambling sites to exchanges are many cases reported with many users lost their funds with freezing accounts because they caught during these exchanges while many exchanges already put things like these into their rules and terms. Mostly peoples feel they could be able to do but things gone against them, and they had to face consequences for their work which is not allowed even in many cases few caught as they used their wallets, but their funds are coming through gambling sites so just because of these things also gone against them.

Having funds these into wallets always better option or using third parties are also ok because many exchanges never welcome customers those are having addictions of gambling but still always staying into positive way helps and increase chances of having better results instead of having problems which always never been sorted out easily.

[gunhell16]

I think that's probably one of the reasons why many gamblers don't know that, especially on centralized exchange site platforms, so for example if you have funds to withdraw from gambling, it's probably better to transfer them to non-custodial wallets before sending them directly to the exchange itself.

And maybe this way at least we won't have the problem of being overlooked by an exchange in my opinion, rather than going directly to the exchange platform, right?

[Lanatsa]

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?

In the first place dude, you already know that it's in their terms and conditions that it's forbidden but you still did it. why? because it's been several times that you've been able to transfer without any problems for a while that you've been doing it on their exchange so you still continued and ignored their terms and conditions? Maybe they just didn't notice right away or maybe you've reached their withdrawal limits accumulatively so that's why you noticed.

So the mistakes are yours not theirs, because they know that it's forbidden but you still did it, so you should expect that anytime they can really do
the thing you don't want but you still did it, you get it.

People do get confident just because they have tested out earlier and turned out that they havent been blocked nor being that banned because of such violation until they have decided to ignore those terms and conditions and believing that it doesnt work or not effective just because they've been able still to make use the platform until the time comes that they have been that suddenly blocked or locked out because of violation. Never ever make yourself that being confident on keeping on continuing on violating those terms and conditions on which we know that they might just that observing you into the things that you've been doing. They might be able to have some lapses on checking out on every user on which basing up into the user base of Binance or those exchangers out there, then you cant be able to monitor out everything. If it turned out that they have made out some warning then consider yourself lucky because they do made out some warning rather than on blocking you immediately.

The solution on here is that you should be that making up some withdrawal from gambling site to your personal wallet and then from there then you do transfer from wallet to exchange site on which this way then you would be able to save up yourself into that potential violation. For me Im pretty sure that i have done this also on making up some directly deposits from gambling site to and exchange and havent been warned out but since i have done it twice or thrice and also im not that always winning at gambling then this is where it do limits out my no. of transactions and this is the reason on why im not facing up on the same problem. Those terms and conditions being placed there because it does have its purpose and for you as a user of the platform on which the thing that you do need up to do is to make yourself that follow those rules for you not to be able to face up some potential problems.

[AmoreJaz]

OP, if you would have googled it, you would see that quite a fair amount of users complain about having problems with withdrawing or depositing funds from or to a gambling platform. Some users recommend using an in-between wallet because all the exchange seems to care about is plausible deniability, and they seem to believe that they do not care as long as the funds are not directly connect wallet to wallet.

Although I personally have no experience with this and cannot give you any advise except to stay away from any and every CEX (centralised exchange).  

It is indeed not new as some exchanges are avoiding to be associated with gambling sites. Hence, they are just securing that they won't have any problems with the authorities. Also, the user should always check the terms of the trading platform and read their stand regarding transfer or deposit of funds from gambling-related sites.
For security purposes of your funds, much better to -
> check the terms of the site before depositing or withdrawing your funds
> you can also read some reviews like in trustpilot and other third party platforms
> better yet, ask their tech support the first time you encounter such problem, and clarify their stand on this matter. It is better to communicate directly with the site so you will understand what's going on and not just relying from hearsay

[BITCOIN4X]

~Snip 

It is indeed not new as some exchanges are avoiding to be associated with gambling sites. Hence, they are just securing that they won't have any problems with the authorities. Also, the user should always check the terms of the trading platform and read their stand regarding transfer or deposit of funds from gambling-related sites.

Yes, centralized terms of service are something that every customer should understand well. They need to read them carefully so as not to violate them, but it is their own responsibility if they really want to ignore them. It is not recommended to deposit crypto from an exchange to a gambling wallet, in many cases this may be a transaction that is prohibited by the exchange to ensure that customers are not laundering money or other illegal transactions.

I don’t know how many centralized exchanges prohibit such transactions, but most probably do to some extent. The casino’s license may be one factor in deciding whether or not to allow transactions involving a gambling wallet, but there are many other factors to consider as centralized services may declare a licensed casino a high-risk platform if they detect something suspicious.

[Mpamaegbu]

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

You bet you should. Your account is under searchlight now and you won't blame them if you're going to be honest with yourself. According to you, the site has a gambling prohibition notice on it. You're already breaking that law.

Did this happen to anyone else?

Nah, it hasn't happened to me.

In the first place, I wouldn't even use a site or an exchange that is clearly against what I'm doing. That's knowingly going against a set rule.

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

No, I would use a private wallet for such.

[irhact]

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

A temporary solution it will be actually but not one which you can always count on. In other to avoid restrictions and not allowing your account getting some reputation that will affect your funds and this is why exchanges should be used for the purpose of changing and trading of crypto assets, other third party services shouldn't be carried out often on exchanges, particularly the ones they mentioned in their terms, for funding of your gambling wallets, you can always do that from a non custodial wallet too and save your self the hitch that comes with the exchanges. These wallet sometimes charges even cheaper fees as compared to the fees exchanges do charge, so they are a better option.

[AmoreJaz]

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

A temporary solution it will be actually but not one which you can always count on. In other to avoid restrictions and not allowing your account getting some reputation that will affect your funds and this is why exchanges should be used for the purpose of changing and trading of crypto assets, other third party services shouldn't be carried out often on exchanges, particularly the ones they mentioned in their terms, for funding of your gambling wallets, you can always do that from a non custodial wallet too and save your self the hitch that comes with the exchanges. These wallet sometimes charges even cheaper fees as compared to the fees exchanges do charge, so they are a better option.

At least the OP received a warning and not freezing his funds right away. Much better to use your own wallet first like electrum (which you don't need a lot of storage) or other third party wallets that you can only use as a intermediary wallet. So you won't directly connect your exchange from the gambling site. I believe, that's one solution. These exchanges may not want to be associated with any other gambling site even if the OP mentioned that the gambling site is legit and license. Still, it is a gambling site.

[armanda90]

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?

Seems exchange market is not wrong about their term of service regulation have mention about internet gambling deposit or withdrawing from that side are prohibited activities. You don't have many option except looking other exchange service not prohibited which one your fund come from exactly from gambling. Generally, I don't read all term of service any exchange and so far deposit from gambling site always landed but my withdrawing only small fund.
Just have bad experienced when my Binance account freeze after withdrawing fund to one gambling site exchange, its happening human error from Binance its self because my deposit credit double but I refund back to get normally by Binance account. So far how many exchange do you use and which one exchange prohibited for gambling fund deposit or withdrawing? I think have many exchange right now and you can check with easily term of service exchange for withdrawing your profit from gambling site.

[dunfida]

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?

Seems exchange market is not wrong about their term of service regulation have mention about internet gambling deposit or withdrawing from that side are prohibited activities. You don't have many option except looking other exchange service not prohibited which one your fund come from exactly from gambling. Generally, I don't read all term of service any exchange and so far deposit from gambling site always landed but my withdrawing only small fund.
Just have bad experienced when my Binance account freeze after withdrawing fund to one gambling site exchange, its happening human error from Binance its self because my deposit credit double but I refund back to get normally by Binance account. So far how many exchange do you use and which one exchange prohibited for gambling fund deposit or withdrawing? I think have many exchange right now and you can check with easily term of service exchange for withdrawing your profit from gambling site.

They were never been wrong not unless if they have that made out some immediate changes of their terms for the sake on trying out to trap their customers then this is the bad thing, but
if we do speak about into those traditional terms and conditions for most platforms then its that always been included that making up some deposits from gambling site platforms and other sources
is prohibited and they do have the absolute right on locking up someones account if ever you do able to violate up these terms on which its common sense. It is just that people are trying out to make
some argumentation just because they've been trying out to deny on what they have done on which everything could be that traced up through chain.

There are just that those times or lets say most of the time on which exchangers doesnt impose this rules or not that blocking up that much but on the moment that they would be having those checks
then dont get surprised that one day your account being flagged about some violation on which you have done that literally. It is just that you are just that being caught that late
and good thing in OP is that he only get some warning on which its still a good gesture.

[taufik123]

Obviously, if you read the ToS of the Exchange that completely prohibits "internet gambling as one of the prohibited activities",
then avoid the Exchange or you can withdraw it to another wallet that is not associated with the casino and then you can make another deposit to the Exchange.

Although your country allows gambling, the Exchange also has a global ToS that they implement,
so if that happens you will have to use other means to avoid being detected as a gambling address.

I just wanted to comment on this.

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.

It's actually not a bad thing if you bet with your own money and you are aware of what you are doing,
if you are happy and get a profit then it cannot be said to be a bad.

[Roseline492]

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

A temporary solution it will be actually but not one which you can always count on. In other to avoid restrictions and not allowing your account getting some reputation that will affect your funds and this is why exchanges should be used for the purpose of changing and trading of crypto assets, other third party services shouldn't be carried out often on exchanges, particularly the ones they mentioned in their terms, for funding of your gambling wallets, you can always do that from a non custodial wallet too and save your self the hitch that comes with the exchanges. These wallet sometimes charges even cheaper fees as compared to the fees exchanges do charge, so they are a better option.

I agree because diverting to intermediary will not still be of any solution to him because the person might still be using the same exchange as him, so the process whereby the intermediary is found on the same prohibited act they would still issued the same warning to the him because there rules will not have exception on him so he should just do what the exchange rules says, however to even think of it if an exchange prohibited it how would they even no that there user has transferred funds to the online gambling since those transfer are mostly done through wallet and we no that it could be difficult locating weather the wallet comes from a non custodian or online gambling site.