The Malta Gambling Authority (MGA) published a manual on the use of blockchain and cryptocurrency, the proposed criteria will form the basis of the planned regulatory sandbox. The document highlights the need to protect users, prevent money laundering and other unlawful actions and protect Malta’s reputation.
Companies that want to add support for cryptocurrency will be required to meet a number of requirements. In particular, cryptocurrencies accepted as a means of payment must have financial and technological value, be traded on the exchange, having “competitive market capitalization” and being an integral part of the company’s activities.
The regulator said that it will consider all the proposed cryptocurrencies and then decide whether the company can use them within its business. The document sets the same conditions for utility tokens within each individual platform.
“Throughout the functioning of this sandbox, the MGA will approve games that are partially or completely based on blockchain, provided that their operator is confident that this will not disable the game,” the authors of the management note, suggesting that the technology of blockchain will “support transparency and to prove the honesty of the game. ”
The management also notes that game operators must develop a plan to eliminate “the risks that may arise or worsen when using cryptocurrencies or utility tokens as a means of payment.” Feedback and suggestions can be sent to MGA by e-mail until April 30.
“We strive to be at the forefront in the regulation of the blockchain business,” wrote recently the country’s prime minister Joseph Muscat, welcoming the Binance cryptoexchange to Malta.
Write: Sara Bauer