MGA implements First Phase of its Sandbox Framework for the acceptance of VFA and the use of DLT within the Gaming Industry
As announced earlier in 2018, the Malta Gaming Authority has launched the first of two phases of its Sandbox Framework for the acceptance of Virtual Financial Assets (VFA) and the use of Distributed Ledger Technology (DLT) within the Gaming Industry on 1 January 2019.
During this phase, the Authority will be accepting applications for the use of DLT assets, directly or through third party service providers, by its respective licensees. This phase is planned to last for a period of 10 (ten) months, subject to an extension if deemed fit by the MGA.
The Authority has also updated its Licensee Relationship Management System (LRMS) to allow:
- New operators to apply for approvals for the use of DLT assets as part of a New Licence Application;
- Existing licensees to apply for approvals for the use of DLT assets through the application type – New or Change in Payment Methods / Financial Management Information; and
- Existing licensees participating in the sandbox environment to report VFA player liabilities through the monthly Player Funds Report. Licensees will also need to report any failed return transactions, with respect to any invalid deposits.
An approval to participate in the Sandbox Framework is conditional on the applicant holding the relevant licence issued by the MGA, without prejudice to any other regulatory requirements stemming from other applicable legislation, including but not limited to the VFA Act and regulations issued thereunder.
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