MGA implements further amendments to the Sandbox Regulatory Framework
The Malta Gaming Authority has created a favourable legal framework to encourage the growth of gaming companies and Malta is one of the countries which has embraced the implementation of blockchain and cryptocurrencies within the iGaming Industry.
Following the Phase 2 of the Sandbox Regulatory Framework, the MGA has recently published amendments regarding ‘Guidance on the use of Innovative Technology Arrangements and the acceptance of Virtual Financial Assets and Virtual Tokens through the implementation of a Sandbox Environment’ due to technological and regulatory developments.
The amendments in relation to the Sandbox Regulatory Framework consist of the below:
- The authorised person and/or prospective authorised person shall be required to submit a legal opinion signed by a registered VFA Agent, regarding the licensability or otherwise of the services in terms of the Virtual Financial Assets Act (Cap. 590 of the Laws of Malta), that shall be undertaken by the authorised person and/or any service provider engaged by the authorised person within the sandbox environment;
- The amendments clarify that authorised persons and/or outsourcing service providers that are carrying out a licensable activity in terms of the Virtual Financial Assets Act (Chapter 590 of the Laws of Malta) require a licence from the MFSA;
- The requirements relating to the verification of control that a player exercises over his/her wallet have been brought in line with applicable AML/CFT obligations; and
- The requirements applicable to the audit of innovative technology arrangements by auditors registered with the MDIA have been clarified.
While being at the forefront of gaming regulation and embracing innovation, the MGA continues regulating this sensitive sector and shows its commitment towards the protection of players and support of the operators.