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.
During the Delta Summit in October 2018, the Malta Gaming Authority announced that it shall be launching this intial stages of the Sandbox Framework in 2019. On the 1st of January 2019, the MGA launched the first of two phases of its Sandbox Framework for the acceptance of Virtual Financial Assets (VFA) and the use of Distributed Ledger Technology (DLT) within the Gaming Industry.
VFA Sandbox Framework Applications
During the first phase of the Virtual Financial Assets Sandbox, the MGA will be accepting applications from MGA licensed entities to utilise DLT Assets such as utility tokens and cryptocurrencies, directly or through third party service providers, in their operations. This first phase will be open for a period of 10 months until October 2019.
Player Specified Limits within the VFA Sandbox Framework
Currently, licensed operators are required to maintain player-specified limits for fiat currencies; rather than include VFAs within the same limit, operators should add a distinct player-specified ceiling for VFAs that is distinct from the fiat currency limit.
Throughout the duration of the Virtual Financial Assets Sandbox no licensed operator may accept deposits in VFA by a player exceeding the equivalent of €1,000 per month. When a player elects to set a player-specified limit in accordance with the Player Protection Directive, the operator must give the player the option to set such limit both for fiat currency and for VFAs.
The implementation of this first phase of the Virtual Financial Assets Sandbox, puts Malta on the map once again with regards to regulatory measures concerning blockchain and cryptocurrency technology.
