MGA Launches Cryptocurrency Sandbox Framework

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January 18th, 2019
Back MGA Launches Cryptocurrency Sandbox Framework

Under the watchful eye of its regulator, Malta Gaming Authority (MGA), the small island nation in the heart of the Mediterranean delivered on their last year's promises and announcements and commenced phase one of its cryptocurrency Sandbox Framework.

The guidelines for the Framework - envisioned as a part of “strategic mission to keep MGA at the forefront of gaming regulation whilst embracing innovation,” as explained by regulatory body's CEO Heathcliff Farrugia – were first published in October last year. This system should alleviate the broader acceptance and adoption of Virtual Financial Assets and Virtual Tokens as well as Innovative Technology Arrangements in global iGaming industry.

Sandbox Framework's phase one has officially started on January 1st and will run for ten months, during which MGA will be “accepting applications for the use of Distributed Ledger Technology Assets by its licensees.”

A Groundbreaking Move

Preceding this big step forward was the enactment of three legislatures over the summer...

...These bills helped constitute a new and modernized environment for digital asset business in Malta by reaffirming the government stance on no insider trading or market manipulation.

The planned ten-month period for the framework can well be extended beyond that, if MGA deems it necessary. When the second phase commences, licensed businesses will be permitted to apply for the use of Innovative Technology Agreements.

Having a fully regulated regime to operate with, MGA has set up a situation ripe with opportunities for use of cryptocurrencies. By encouraging licensees to adopt them, both the regulator and gaming companies can work hand in hand on determining the pros and cons of digital currency use.

Making Everyone's Life Easier

Pushing for the wider acceptance of assets such as Bitcoin has multiple benefits...

...But, when the chips are down, it all boils down to perks of having a pro-crypto market that takes the advantages of Bitcoin's lightweight and fast nature and implements them into existing payment systems in order to solve issues related to this aspect of gaming.

It is not yet clear just how big the turnaround for crypto licensing will be, but within next ten months we will be bringing you constant updates on this potentially revolutionary initiative.

When speaking about the Sandbox Framework, Farrugia also added:

“This Framework is intended as a live document and will therefore be subject to feedback and potential updates during its duration, whilst also keeping in consideration any technological or regulatory developments which may occur.”

He concluded by saying that innovation coupled with the rise in interest from operators to incorporate VFAs and DLT into their operations were the “driving force behind regulators proactive approach regarding the use of these technologies within a controlled environment.”

Source:

“Malta Gaming Authority starts phase 1 of crypto Sandbox Framework”, Derek Tonin, calvinayre.com, January 7, 2019.

“delivered on their last year's promises”

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