First steps towards Malta accepting cryptocurrency in gaming. On the 29th March 2018, the Malta Gaming Authority (MGA) issued a consultation document which provides guidance on the use of Distributed Ledger Technology and on the acceptance of Virtual Currencies by Malta licence gaming companies through the implementation of a Sandbox Environment. The purpose behind this is for MGA to be at the forefront of remote gaming regulation whilst also welcoming innovation and acknowledging that a prudent approach in this area is both sensible as well as required.
The elements pertaining to virtual currencies pose a number of risks which are to be addressed cautiously. The MGA is aware that such risks are to be confronted to guarantee safeguards to protect consumers, cater for the prevention of crime and money laundering or else the funding of terrorism (whilst keeping in mind the 4th Anti Money Laundering Directive) and to protect the reputation of the Maltese jurisdiction.
Hence the MGA is issuing for public consultation principles provided in this paper for the establishment of a sandboxed (test and learn) environment for virtual currency adoption within the remote gaming sector, while at the same time drafting guidance principles for the application of Distributed Ledger Technology and its different adaptations within the industry.
Our Fintech Practice
Chetcuti Cauchi Advocates is a leading law firm within the Fintech industry, where Senior Partner Dr Priscilla Mifsud Parker, and Head of Corporate & Fintech, Mr Steve Muscat Azzopardi are actively advertising and assisting clients to navigate through the new regulatory regime. Should you be interested in setting up your tech company and attaining recognition from the regulatory, launching your ICO under Maltese regulatory framework, setting up a Crypto Exchange or a Crypto Fund, we would be happy to guide you through the regulatory processes.
