MGA unveils sandbox framework for virtual currencies
Authority to accept applications to use virtual currencies and virtual tokens from 2019
The Malta Gaming Authority (MGA) has released the first details of its sandbox framework in which it aims to accept virtual currencies and tokens as a method of payment from 1 January 2019.
The MGA said the sandbox will run for 10 months, with the newly published framework intended as a live document, subject to feedback from applicants and potential updates during the 10 month period, in order to take into account any subsequent technological and regulatory developments.
Announcing the framework at the inaugural Delta Summit, MGA CEO Heathcliff Farrugia said: “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 [crypto currencies] 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.”
A regulatory sandbox is as a safe space in which businesses can test innovative products, services, business models and delivery mechanisms without immediately incurring all the normal regulatory and financial consequences of engaging in the activity in question.
During the sandbox, the MGA will assess whether to accept virtual tokens and currencies as methods of payment on a case by case basis subject to distributed ledger technology (DLT) asset requirements.
The sandbox will commence on 1 January 2019 and run for a period of 10 months. This Framework is intended as a live document and will be subject to feedback from applicants and potential update during the 10 month period, in order to take into account any subsequent technological and regulatory developments.
Farrugia added: “The MGA envisages that this framework will run until the end of October 2019, although its extension, both partially or wholly, could be a possibility.”
A full list of accepted virtual tokens and currencies will be published by the MGA at the end of this period.