Implementation of the first stage of the MGA’s Sandbox Framework for the acceptance of Virtual Financial Assets (VFA) and the use of Distributed Ledger Technology (DLT) within the Gaming Sector
Very recently, on the 1st of January 2019, the MGA introduced the first phase of its Sandbox Framework for the acceptance of VFA and the use of DLT within the Gaming Sector. This phase is expected to go on for 10 months with a possible extension period should this be considered appropriate by the MGA. Throughout this phase applications for the use of DLT Assets (directly or indirectly through third party service providers) by the MGA’s licensees will now be accepted.
In addition, the MGA has made certain adjustments to its Licensee Relationship Management System (LRMS):
- New operators may apply for approvals for the use of DLT Assets when applying for a New Licence Application;
- Current licensees may apply for approvals for the use of DLTAssets through the application type – ‘New or Change in Payment Methods’ / ‘Financial Management Information’;
- Existing licensees involved in the sandbox environment may report VFA player liabilities through the monthly Player Funds Report. Licensees are also required to report any failed return transactions, in relation to any invalid deposits.
In order for an approval to participate in the Sandbox Environment to be granted, the applicant must hold the relevant licence issued by the MGA, notwithstanding any other applicable regulations derived from other related legislation, such as the VFA Act and regulations stemming from such Act.