MGA Guidelines on Cryptocurrency & Blockchain Sandbox Framework

The Malta Gaming Authority (MGA) provided additional information about its newly-introduced Sandbox Framework for the acceptance and broader adoption of Virtual Financial Assets and Virtual Tokens and Innovative Technology Arrangements (ITAs) within the gaming industry. The news was introduced at the Delta Summit, currently ongoing at the Intercontinental Arena Conference Centre (IACC) in Saint Julian’s, Malta.

Embracing Innovation

MGA’s CEO, Heathcliff Farrugia said on the occasion:

“The MGA’s strategic mission is to be at the forefront of gaming regulation whilst embracing innovation. This, coupled with the rapid rise in interest from gaming operators to incorporate VFAs and DLT into their operations, were the main drivers behind the proactive approach taken by the Authority to issue a Sandbox Framework for the use of these technologies within a controlled regulatory environment. This Framework is intended as a live document and will therefore be subject to feedback and potential updates during its duration, whilst also keeping in consideration any technological or regulatory developments which may occur. The MGA envisages that this framework will run until end of October 2019, although its extension, both partially and wholly, could be a possibility. The Delta Summit is definitely the ideal place to launch this sandbox.”

Mr Farrugia will also participate in a panel entitled “Blockchain and the Future of the Gaming Industry” due later today. The participants will discuss the aspects of the blockchain regulation from a gaming perspective.

A Two-Phase Framework

According to MGA, the framework will comprise two phases. The first (starting January 1, 2019) will see the acceptance of applications for the use of DLT assets (VFAs and Virtual Tokens), directly or through third-party service providers, by licensees…

The second will see the sandbox framework being extended to applications for the use of ITAs within the key technical equipment of licensees, to coincide with developments launched by the Malta Digital Innovation Authority (MDIA). Once the Authority has issued an approval for the use of DLT assets by a licensee, the dynamic seal will reflect the fact that the licensee is participating in the sandbox environment.

New Gaming Act in Action

The launch of the sandbox follows the implementation of Malta’s new Gaming Act, which aims to simplify the previous licensing system. Before its introduction, gambling companies had to obtain multiple documents, whereas the new Act allows for only two categories: B2B- and B2C operations licenses.

Source:

“The MGA publishes Guidelines on its Sandbox Framework for the acceptance of Virtual Financial Assets and the use of Distributed Ledger Technology within the Gaming Industry at the Delta Summit 2018”, mga.org.mt, October 4, 2018.