Malta Gaming Authority to regulate blockchain technology by 2018
Authority to publish a formal guidance document once technical consultations are concluded
The Malta Gaming Authority is aiming to roll-out a regulatory framework for blockchain technology by Q1 2018.
Chairman of the MGA, Joseph Cuschieri told EGR Intel blockchain technology was adaptable within the online gambling space, and offered “a robust platform for a transparent gaming economy”.
An MGA commissioned technical study on the regulation of crypto and blockchain-powered technology has now been completed, and the next move is to publish a formal guidance document for operators and other stakeholders.
“[A regulatory framework will] involve different facets to set up a proper controlled environment,” Cuschieri said.
“For example, restrictions on PSPs, monitoring and supervision mechanisms, nature of transactions, game restrictions, taxation issues and reporting, amongst other factors.
The legal and regulatory environment landscape for cryptocurrencies has continued to evolve at a rapid pace.
Clarifications have continued to properly define the status of cryptocurrencies and its acceptance, if at all, by governments,” he added.
The MGA’s move is part of a wider government initiative to make Malta “a centre of excellence for blockchain technologies”.
Although both the UK and Isle of Man have adapted their regulation to allow operators to accept virtual currencies, Malta aims to be the first jurisdiction to fully regulate the technology within the remote gambling sector.
Elsewhere, the Gambling Commissioner for similar gambling jurisdiction Gibraltar, Phill Brear, remains unconvinced by blockchain.
“We have found blockchain whitepaper claims to be misleading and untrue, relying on imaginary anecdotes of internet gambling far outside licensing and regulation,” he told EGR Intel.