The Malta Gaming Authority has issued a consultation document providing guidance on the use of distributed ledger technology and on the acceptance of virtual currencies through the implementation of a sandbox environment.
Virtual currencies and distributed ledger technology are a new disruptive phenomenon in the digital currency and technology area. The MGA’s strategy is to be at the forefront of remote gaming regulation, while embracing innovation and acknowledging that a prudent approach in this area is both sensible and required.
The characteristics of virtual currencies – often cited as drivers for their adoption – pose a number of risks which need to be addressed in a well thought-out manner.
The MGA is mindful that these risks need to be addressed in order to ensure that the necessary safeguards are in place to protect consumers, prevent crime and money laundering or funding of terrorism and protect the reputation of the Maltese jurisdiction.
Perspectives of fellow stakeholders, the online gaming industry and key experts have been consolidated and the MGA is issuing a public consultation for a sandbox (test and learn) environment for virtual currency adoption within the remote gaming sector, whilst also drafting guiding principles for the application of DLT and its various adaptations within the industry.