The Malta Gaming Authority has recently announced an initiative which will allow individuals to forge a relationship between iGaming and Blockchain. By taking such an avant-garde approach, Malta is fostering further innovation within the industries. It is, therefore, truly establishing itself as a leader within both rapidly evolving industries.
A test and learn initiative was launched by the Malta Gaming Authority (MGA) for the use of Distributed Ledger Technology and acceptance of cryptocurrencies by gaming operators in a sandbox environment.
The Malta Gaming Authority (MGA) launched this initiative whereby a number of operators will be able to operate on DLTs and accept cryptocurrencies in a test environment, at the Delta Summit in Malta, Malta’s official blockchain and digital event. The aim is for the Authority to be able to analyse the risks and opportunities within the sandbox and determine how they will play out within a rapidly evolving scenario.
It is expected that the sandbox will run from the January to October 2019, paving the way for possible adoption thereafter of the general use of DLTs and acceptance of cryptocurrencies by Malta gaming operators.
The MGA Sandbox Consultation Paper
The launch of this test and learn initiative was preceded earlier on in the year by a consultation paper published by the MGA on the development of a Sandbox Environment for Distributed Ledger Technologies and Virtual Currencies. The consultation paper called on stakeholders to contribute to the formation and creation of the testing environment, attracting a large amount of feedback.
The role of the MGA
The MGA has the duty of maintaining a balance between the promotion of innovation whilst at the same time managing the risk exposure through a strong legal framework. It is particularly concerned with the safeguarding of consumers, ensuring the prevention of crime, money laundering and the funding of terrorism as well as upholding Malta’s pristine reputation. By maintaining such a prudent approach, the MGA would be contributing towards Malta becoming a pioneer within the world of blockchain and cryptocurrencies.
The use of this sandbox will not only serve well for persons who wish to test the crypto environment in Malta, but will also allow potential participants to seek direction on potential regulatory requirements involving other authorities. Due to the fact that this industry is relatively new, and, therefore, highly unregulated, by introducing such initiatives, the Authority is providing investors with the necessary freedom to experiment and bring about further innovation.
