The Malta Gaming Authority (MGA) has launched the second phase of its Sandbox Regulatory Framework, eight months after Phase 1.
Malta.- Phase two of the Sandbox Regulatory Framework was launched by the Malta Gaming Authority (MGA) on Wednesday. This move follows the implementation of the first phase, launched on January 1, which paved the way for the possibility for authorised people to accept Virtual Financial Assets (VFAs) as a mean of payment.
The second phase will make it possible to accept applications for the use of Innovative Technology Arrangements (ITAs), including the Distributed Ledger Technology (DLT) platforms and smart contracts. The MGA said that it will extend the duration of the Sandbox Regulatory Framework until December 31, 2021.
The MGA amended the Innovative Technology Arrangement to reflect developments, and the Licensee Relationship Management System (LRMS) has been updated. Thanks to the second update, both prospective and existing licence holders can apply for the MGA’s approval in order to integrate ITAs within their operation.
“ITAs shall be required to be audited by auditors registered with the Malta Digital Innovation Authority (MDIA) in terms of the Innovative Technology Arrangements and Services (ITAS) Act (Chapter 592 of the Laws of Malta), and shall only be accepted by the MGA if the audit report consists of a positive opinion and the MGA is satisfied that the regulatory requirements shall be adhered to by the authorised person,” explained the MGA in a press statement.
“An approval to participate in the Sandbox Regulatory Framework is conditional on the applicant holding the relevant licence issued by the MGA, without prejudice to any other regulatory requirements stemming from other applicable legislation, including but not limited to, the Virtual Financial Assets Act (Chapter 590 of the Laws of Malta) and the regulations issued thereunder,” the Malta regulator explained.