Malta Gaming Authority drives mock cryptocurrency trial
Malta to integrate trial virtual currency into local economy as next step in developing regulation
Malta is plotting a trial cryptocurrency roll-out following a suggestion made by auditing firm PwC in a recent Malta Gaming Authority (MGA) commissioned report.
According to the Times of Malta, the initiative will see a mock cryptocurrency introduced within a controlled environment, to test proposed controls and legislation without harming the local economy.
The trial roll-out is supported by local regulatory bodies, the Central Bank of Malta, and a taskforce set up by Prime Minister Joseph Muscat tasked with exploring the best way to adopt virtual currencies.
Gaming Authority chairman Joseph Cuschieri, who is on the taskforce, told the Times of Malta the country could no longer adopt a “do nothing” approach regarding cryptocurrency.
It is the first move in the MGA’s long-term strategy to integrate virtual currency and blockchain technology into the jurisdiction’s remote gaming legislation. Cuschieri said cryptocurrencies “present us with a double-edged sword, combining opportunity with significant risks”.
The MGA chairman has previosuly told EGR: “Cryptocurrency is an opportunity for the gaming industry to innovate on the digital payments side of the value chain, by providing an alternative payment mechanism for players who want to make use of virtual currencies.
“Having said this, it is important that such a disruptive innovation operates within a properly regulated environment,” he added.
The MGA plans to implement a regulatory framework for blockchain and virtual currency technology by Q1 2018.