The Malta Gaming Authority (MGA) has published proposed guidance on using distributed ledger technology and cryptocurrencies within the nationâs online gaming space.
The document â which is currently open for feedback â explains the need to protect consumers, prevent money laundering and other crimes and protect Maltaâs reputation, saying the criteria set out in the paper will inform a planned regulatory âsandboxâ environment. Ultimately, this sandbox could result in new regulations for Maltaâs remote gaming ecosystem.
Notably, companies that want to accept cryptocurrencies will have satisfy a range of conditions, including that the cryptocurrencies provide financial and technological value, that they can be traded on exchanges with a âcompetitive market capitalizationâ and that they are integral to the companyâs use case.
The regulator says it will evaluate each cryptocurrency and provide final approval over whether a company can utilize them in their businesses. Similar conditions apply to custom tokens, says the document.
As part of the sandbox, games hosted by an operator must use a distributed ledger to âmaintain the transparency and prove the fairness of these games.â
The MGA states:
âFor 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.â
The guidelines further specify how AML procedures should work, noting that game operators must plan for âthe risks which may arise, or be exacerbated by, the use of cryptocurrencies or custom tokens as a funding method.â
Anyone interested in providing feedback should email the MGA by April 30, 2018.
Malta image via Mazzard Photography/Wikimedia Commons