A US court has ruled the Celsius Tether case admissible, citing a $4 billion Bitcoin liquidation. The case at hand calls on heightened legal risk for online gaming firms and cryptocurrency exchanges that are using digital assets as a way to avoid regulation.
$4 Billion Bitcoin Liquidation at Center of Dispute
Celsius Tether lawsuit is a culmination of allegations that Tether forced Celsius to sell off part of $4 billion in Bitcoin. Celsius claims that the action by Tether was an unfair market practice. The reality that the case could persist in the courts adds to heat in stablecoin issuers already in regulators’ bad books.
Tether has been made responsible for what it did, terming its actions as having kept markets stable. Lawyers opine that the case would serve as a precedent for crypto asset trading and collateralized lending processes.
Online Gambling Under Crypto Scanner
The ruling affects web-based gaming websites that employ crypto to evade regulation. LawNews quotes that governments monitor the use of virtual currencies by websites for making payments and withdrawals closely. The majority of websites provide Tether or Bitcoin in order to stay off the list of banned payments.
But regulators say that this opens up the door to fraud and money laundering. Others believe that the Celsius Tether lawsuit is a sign that courts will be holding larger crypto players accountable, and this can be applied to video games.
Requests for Tighter Crypto Regulation Mount
Consequently, Celsius-Tether suit could lead to tighter crypto regulation in the US and EU. Lawmakers already plan to strengthen anti-money laundering scrutiny of exchanges that handle large stablecoin transactions.
They are not exempt either. With greater online gaming and cryptocurrency, lawmakers will consider expanding their oversight to license and audit crypto transactions.
Industry insiders would hypothesize in confidence that tighter regulation would push out the smaller players. They all agree, nonetheless, that there must be appropriate rules to adhere to in order to protect customers and provide a fair level playing field.
What’s in Store for Crypto?
As the Celsius Tether lawsuit moves forward, both the crypto and online gambling industries face new questions. Will courts force stablecoin issuers to change their practices? Could gambling sites lose easy access to crypto payments?
Industry experts predict the case verdict to be influential in utilizing digital assets in riskier activities such as Internet gambling. Meanwhile, risk of more litigations and stricter scrutiny also lies ahead for businesses.
