Malta Gaming Authority’s (MGA) new sandbox framework will consolidate the acceptance of virtual financial assets and virtual tokens. Operators will be able to use blockchain technology to accept cryptocurrency payments. In response to the positive feedback received on the proposed sandbox framework, MGA extended its invitation for applications from interested parties to 27 February.
Speaking with SiGMA News, Dr Joseph F Borg, a lawyer who specialties in the fintech and gaming sectors explained “The MGA’s growing confidence and acceptance of virtual assets heralds a new era for operators, enabling innovation through regulation and permitting reach to new markets and demographics.”
Malta Gaming Authority (MGA) set up the framework in 2018 for operators to accept distributed ledger technology (DLT) crypto assets as a method of payment. Regulations include wallet validation and verification with restrictions on deposit limits.
“The proposed policy highlights the attractiveness of the MGA licence, by allowing operators to accept virtual assets. Players alike will receive increased security and privacy.” added Dr Borg. He added that MGA´s strategy is to remain at the forefront of the gaming industry and protect the reputation of the sector in the Maltese jurisdiction. Consumers and authorised operators are both safeguarded. The risks associated have been considered carefully and will reduce crime and money laundering.
The first phase of the Framework was released in January 2019. Approval to participate in the initiative is conditional on a relevant licence granted by Malta´s regulator.
“The comprehensive regulatory framework for crypto assets also known as MiCA will be implemented in in 2024. It will define markets in Crypto assets and provide a solution for the gaming sector who wish to offer deposits in crypto.” said Dr Borg. “The current Sandbox has been cautiously extended to end of February 2023, but we predict the policy to be implemented very soon!”
Dr Joseph Borg heads the Fintech and Gaming sectors at legal firm W H Partners based in Malta. He is a founding member of Bitmalta, an NGO that promotes the use of blockchain and cryptocurrency. He was previously Chief Regulator Officer of the Lotteries and Gaming Authority (now known as Malta Gaming Authority).