The Malta Gaming Authority (‘MGA’) is today issuing a consultation document which provides guidance on the use of Distributed Ledger Technology and on the acceptance of Virtual Currencies through the implementation of a Sandbox Environment.
Virtual Currencies and Distributed Ledger Technology (DLT) are a new disruptive phenomenon in the digital currency and technology area. The MGA’s strategy is to be at the forefront of remote gaming regulation while embracing innovation and acknowledging that a prudent approach in this area is both sensible and required.
The characteristics of virtual currencies, while often cited as drivers for their adoption, simultaneously pose a number of risks which need to be addressed in a well thought out manner. The MGA is mindful that these risks need to be addressed in order to ensure that the necessary safeguards are in place to:
- Protect consumers;
- Cater for the prevention of crime and money laundering or funding of terrorism (with due regard to the 4th Anti Money Laundering Directive) and;
- Protect the reputation of the Maltese jurisdiction.
By consolidating perspectives of fellow stakeholders, the online gaming industry and key experts in these type of technologies, the MGA is issuing for public consultation, criteria as set out in this paper for the establishment of a sandboxed (test and learn) environment for virtual currency adoption within the remote gaming sector, whilst also drafting guiding principles for the application of DLT and its various adaptations within the industry.
Queries and requests for clarifications with respect to the content of the document, as well as contributions/feedback from interested parties may be sent by email to [email protected] or in writing to:
Malta Gaming Authority
Building SCM 02-03, Level 4,
SmartCity Malta,
Ricasoli SCM1001,
Malta.
Closing date for feedback on the aforementioned consultation is Monday, 30 April, 2018.