One of the most innovative technologies which have permeated every facet of life is none other than blockchain technology. With use cases for the Distributed Ledger Technology (DLT) coming up daily, the gaming sector is not left behind.
Considering that the space is decentralized and has lowered entry requirements, it is easy for those with nefarious intentions or unqualified persons to gain entry and make off with people’s funds. This has necessitated putting in place regulations that protect investors and all participants.
As a form of external regulation, the Malta Gaming Authority (MGA) has just published a 21-page guideline “on the use of Distributed Ledger Technology and the acceptance of Virtual Currencies through the implementation of a Sandbox Environment”
The proposed guideline is to regulate the use of DLT and cryptocurrencies within the country’s online gaming space. MGA is expecting feedback from the public on the guidelines.
As with any regulation aim, Malta seeks to protect her citizens from fraud, money laundering and other money crimes made easier by the anonymous virtual currency. Whilst protecting her citizens, the country also aims to protect its reputation through the guidelines.
By creating a “sandbox” around the guidelines as companies comply, MGA would be equipped to create tailored future regulations to govern the online gaming industry in Malta.
To comply with the new guidelines, the gaming company must meet several conditions which include that the accepted crypto provides financial and technological value, they are a part of the company’s ecosystem and can be traded on exchanges with a “competitive market capitalization.”
Apart from the above conditions, the company’s crypto must be subject to evaluation by MGA who must first approve before the gaming company can utilize the Cryptos in their business.
Of course, it is expected that any gaming company participating in the sandbox must have its platform built on a DLT in order to “maintain the transparency and prove the fairness of these games.”
According to MGA:
“For the duration of this sandbox, the MGA will accept games that are hosted fully or partially on a blockchain environment, provided that the operator shall ensure that the gaming service is not unduly disrupted by such operational setup.”
Feedbacks from the public on the proposed guidelines are expected to be submitted on or before April 30, 2018 by email.