The Malta Gaming Authority (“MGA”) has announced the launch of the first of two phases of its Sandbox Framework for the acceptance of cryptocurrencies and the use of Distributed Ledger Technology (“DLT”) such as Blockchain by its licensees.
Throughout the first phase, the MGA will accept applications for the use of DLT assets by its licensees. Such use may be carried out directly, or via third party service providers.
The MGA’s Online Portal, known as the “Licensee Relationship Management System”, has been updated so as to permit:
- New operators to apply for approvals for the use of DLT assets as part of a new license application;
- Existing licensees to apply for approvals for the use of the DLT assets; and
- Existing licensees participating in the sandbox environment to report their crypto player liabilities. Any failed return transactions with respect to invalid deposits also need to be reported.
Approval to participate in the Sandbox Framework is conditional upon the applicant holding the relevant MGA license. This first phase is planned to last for a period of 10 months and may be extended by the MGA if deemed fit.
The MGA announcement can be accessed here www.mga.org.mt/the-mga-implements-first-phase-of-its-sandbox-framework-for-the-acceptance-of-virtual-financial-assets-and-the-use-of-distributed-ledger-technology-within-the-gaming-industry/.
Article by Dr Terence Cassar.
Disclaimer: This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.