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Can I offer a cryptocurrency as a form of payment without violating financial regulations in Michigan? What are the requirements?

Based on the provided context documents, there are no specific regulations in Michigan that prohibit the use of cryptocurrency as a form of payment for internet gaming or sports betting. However, internet gaming platform providers and operators are required to comply with certain financial reporting requirements [1.1]. Additionally, internet gaming operators and platform providers must establish electronic authorized participant files for each participant, which includes personal information such as name, date of birth, and social security number or equivalent identification number for noncitizens [3.1].

It is important to note that the use of cryptocurrency may be subject to federal regulations, and it is recommended to consult with a legal professional to ensure compliance with all applicable laws and regulations.

In terms of financial requirements, the Michigan Gaming Control and Revenue Act requires licensees to provide cash or unencumbered securities to the commission as proof of financial responsibility [2.1]. Additionally, licensees are required to submit all fees, fines, taxes, payments, and assessments to the board by a payment method acceptable to the board, such as a certified check, cashier’s check, money order made payable to “State of Michigan,” or electronic transfer of funds [4.1].

Furthermore, internet gaming operators must periodically review all adjustments to internet wagering accounts for amounts of $500.00 or less, and all other adjustments must be authorized by supervisory personnel before being entered [3.2].

If you are applying for an internet gaming supplier’s license or a sports betting supplier’s license, you may be eligible for a provisional license if you meet certain requirements, such as submitting a completed application, an application fee, and all required disclosure forms and other required written documentation and materials [1.2][4.3].

In summary, while there are no specific regulations in Michigan that prohibit the use of cryptocurrency as a form of payment for internet gaming or sports betting, it is important to comply with all financial reporting requirements and consider any applicable federal regulations. Additionally, licensees must provide cash or unencumbered securities as proof of financial responsibility and submit all fees, fines, taxes, payments, and assessments to the board by an acceptable payment method.

Source(s):
Jurisdiction

Michigan