The Malta Gaming Authority has proposed guidelines on cryptocurrencies and Blockchain applications by the gaming industry.
The public document called “Guidance on the use of Distributed Ledger Technology and the acceptance of Virtual Currencies through the implementation of a Sandbox Environment” aims to apply standards to games that use cryptocurrencies and Blockchain technology.
The authority aims to form a licensing system for game developers, specifically suggesting the establishment of standards for accepting crypto as a means of payment, use of digital currency wallets, deposits, and the calculation of exchange rates.
MGA noted that it will accept games “that are hosted fully or partially on a Blockchain environment, provided that the operator shall ensure that the gaming service is not unduly disrupted by such operational setup.” Notably, the MGA will accept DLT verification in determining whether a game is provably fair and truly random; concepts which are especially important in electronic gambling.
MGA seeks to protect customers and the “reputation of Maltese jurisdiction”, and to support anti-money laundering (AML) measures in compliance with the EU 4th Anti-Money Laundering Directive. MGA is offering to test games adhering to the new cryptocurrency and Blockchain regulations in a specially engineered “sandbox” environment open to game developers. The gambling regulatory authority plans to provide a final version of the sandbox environment on April 30.
Yesterday Cointelegraph reported that mobile chat Kik App recently revealed plans to partner with video gaming company Unity Technologies in a move towards mainstream adoption of its Kin cryptocurrency by the gaming industry.