The Malta Gaming Authority (MGA) has just launched the second phase of its Sandbox Framework initiative. The effort aims to explore how crypto assets might be used at licensed online casinos.
The leading iGaming licensing authority will now accept applications to start using blockchain technology and cryptocurrencies within their platforms. It follows the successful completion of the first phase of the initiative in which holders of MGA licences were given the opportunity to experiment with blockchain-based digital assets in a controlled environment.
MGA to Bring Crypto to Licensed Casinos
Although there is nothing at all new about crypto casinos, as far as we know, none of the major iGaming regulators on the planet have granted a licence to one. However, the Malta Gaming Authority is looking to change that as soon as possible.
According to a report in online gambling publication iGamingBusiness, the MGA has just started the second stage of an initiative seeking to explore how licensed online casinos might be able to use crypto assets and other innovative technologies within their games and platforms.
Following a successful first phase of the Sandbox Framework, launched in January of this year, the authority will now accept applications for what it calls Innovative Technology Arrangements (ITAs).
The report states that prior to an ITA application being approved, the company in question must undergo a full audit to ensure that the regulator will respect any regulatory obligations that might arise from their use of crypto assets or associated technology. All audits must be carried out by an Malta Digital Innovation Authority-approved auditor.
In addition to the launch of phase two, MGA has decided to extend the total duration of the Sandbox Regulatory Framework initiative. It was initially intended to run for 10 months but its success so far prompted an extension to 31 December, 2021.
It comes as no surprise to see the Malta Gaming Authority leading the field when it comes to crypto asset and blockchain technology integration with online casino offerings. Malta is, of course, famous for its progressive stance towards distributed ledger technology.
The government of Malta has been keen to create favourable conditions for blockchain and crypto startups and the island’s lenient regulations surrounding the industry has meant that big names, such as Binance, have setup shop on Malta. That said, there have also been reports of young companies associated with the crypto industry struggling to access traditional banking facilities, with banks being more wary of firms that offer some form of digital currency, as opposed to those experimenting with distributed ledger technology alone.