MGA Launches Sandbox Framework for Digital Currencies and The Use of Distributed Ledger Technology

The development of Virtual Financial Assets (VFAs) and Virtual Tokens has encouraged The Malta Gaming Authority to launch Sandbox Framework for the use of digital currencies and Distributed Ledger Technology (DLT). The guidelines on the framework were presented at the Delta Summit 2018, held in Malta between October 3rd-5th, 2018.

During the Summit, the MGA’s Chief Executive Officer, Heathcliff Farrugia, commented:  “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.

“… The Delta Summit is definitely the ideal place to launch this sandbox …”

  Source: Press Release, published on October 4th, 2018.

MGA is going to implement the Sandbox Framework in two phases. The first phase begins on the 1st of January 2019 with applications for the use of DLT as a method of payment from interested parties. DLT incorporates VFAs and Virtual Tokens, which include such popular cryptocurrencies as Bitcoin, Bitcoin Cash, Litecoin, Dogecoin, Zcash, and Ethereum. The detailed guide on the use of cryptocurrencies at online casinos can be found here. The second phase will be devoted to applications for the use of Innovative Technology Arrangements (ITAs)  

“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 or wholly, could be a possibility. The Delta Summit is definitely the ideal place to launch this sandbox,”  continued Heathcliff Farrugia.