MGA publishes Guidelines on Sandbox Framework for the acceptance of VFA and use of DLT within the Gaming Industry

MGA publishes Guidelines on Sandbox Framework for the acceptance of VFA and use of DLT within the Gaming Industry

On the 4th October 2018, the Malta Gaming Authority (MGA) published details in respect of the ‘Sandbox Framework’ to be rolled out in 2019 for the acceptance of Virtual Financial Assets (VFAs) and Virtual Tokens and the use of Innovative Technology Arrangements (ITAs) within the gaming industry in Malta.

As of the 1st January 2019 the MGA will accept applications for the use of DLT assets as a method of payment in the context of gaming operations

It is understood that the framework will be divided into two distinct phases:

  • The first phase will be launched as of the 1st January 2019 when the MGA will effectively start accepting applications for the use of DLT assets (VFAs and Virtual Tokens) as a method of payment in the context of gaming operations.
  • The subsequent second phase will entail the extension of the sandbox framework to applications for the use of ITAs within the key technical equipment of licensed gaming operators, which will coincide with developments launched by the newly established Malta Digital Innovation Authority (MDIA).

The MGA’s announcement follows the approval by the Maltese Parliament of a comprehensive legal framework relating to VFAs and blockchain technology and effectively regulating blockchain-based businesses and their service providers, as well as cryptocurrencies and initial coin offerings, making Malta the first jurisdiction globally to enact specific and comprehensive legislation in the sector.

The rolling out of the MGA’s ‘Sandbox Framework’ is expected to further consolidate Malta’s position as a leading jurisdiction for regulated blockchain and cryptocurrency related business.

And has been widely welcomed by gaming operators based in Malta who wish to incorporate VFAs and DLT into their operations.

The rolling out of the MGA’s ‘Sandbox Framework’ is expected to further consolidate Malta’s position as a leading jurisdiction for regulated blockchain and cryptocurrency related business

The MGA has indicated that its ‘Sandbox Framework’ is intended to be a ‘live’ document and, as such, will be subject to feedback and potential updates as deemed appropriate and also as may be considered suitable in the context of any future technological or regulatory developments.

It is anticipated that the MGA’s ‘Sandbox Framework’ will run until end of October 2019.

 

Contact Be. Legal Advocates for more information in respect of the MGA’s Sandbox Framework

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