Malta Gaming Authority (MGA) has published a proposed guidance on using distributed ledger technology and cryptocurrency on the national gaming market.
The MGA published guidance to “protect consumers, cater for the prevention of crime and money laundering or funding of terrorism (with due regard to the 4th Anti Money Laundering Directive); and protect the reputation of the Maltese jurisdiction.”
The regulator proposes to create a legal sandbox for working out the proposed rules, which will form the basis of future legislation.
The MGA is continuously analyzing ongoing developments in the fields of Distributed Ledger Technology (DLT) and virtual currencies including their application in various technology and innovation-driven industries.
Only cryptocurrencies which satisfy the established criteria may be accepted by MGA. According to the new guidance, companies wishing to accept crypto-currencies as payment for their products and services should follow a number of requirements, including the following: the accepted crypto-currencies should contain financial and technological value, be traded on the exchange, have “competitive market capitalization”, and also be an integral part of the company’s business model. The same conditions will apply to custom tokens.
As part of the future “sandbox”, games hosted by an operator must use a distributed ledger to”maintain the transparency and fairness of these games.”
Executive Chairman of MGA, Joseph Cuschieri, said that they are waiting for feedback to this paper
“Innovation is at the forefront of our strategy, coupled with a regulatory ethos
which is designed to ensure a gaming ecosystem that enables economic development and innovation
but most importantly continues building the necessary safeguards to prevent societal and criminal
risks,” he added.
During the study on risks associated to DLT and virtual currencies, the MGA also gathered extensive
feedback from other relevant Authorities including the MFSA, CBM and FIAU.