Malta regulator hosts first regulatory workshop on proposed crypto and NFT policy

The Malta Gaming Authority hosted Friday the first of a series of regulatory workshops with the aim of further strengthening the dialogue between the Authority and the industry and encouraging the exchange of views around regulatory topics.

MGA CEO Carl Brincat said the Authority was committed to pulling the same rope along with operators and service providers of good will.

“Such workshops are testament to our commitment to keeping an open and collaborative dialogue with the industry, by creating space for such feedback to be freely communicated," he said. “This, in turn, enables the Authority to regulate a market space that is simultaneously competitive and safe.”

This first workshop, which brought together over 40 participants representing MGA-licensed companies and service providers, focused on the proposed policy for the use of Innovative Technology Arrangements and the acceptance of Virtual Financial Assets and Virtual Tokens.

The workshop was addressed by Odhran Griffin, MGA System Auditor, and Brandon Debattista, MGA Head of Legal and Regulatory Affairs. Representatives from the Financial Intelligence Analysis Unit (FIAU) and the Malta Financial Services Authority (MFSA) were also present during the workshop and contributed to the discussion by presenting their position.

The MGA's first regulatory workshop focused on the proposed policy for the acceptance of cryptocurrencies as a means of payment by MGA licensees, and the use of DLT in their operations, such as smart contracts & gaming platforms based on DLT. Read more: https://t.co/e4pTA367vn pic.twitter.com/3hZJiwrTRu

— MaltaGamingAuthority (@MaltaGamingAuth) December 2, 2022

The policy governs the acceptance of cryptocurrencies as a means of payment by MGA licensees, along with the use of distributed ledger technology (DLT) in their operations, such as smart contracts and gaming platforms based on DLT.

"Following the conclusion of the Sandbox Framework on 31 December 2022, the policy shall come into force and delineate the rules applicable to operators that wish to obtain an approval in terms of the same," said the regulator.

The feedback obtained during the workshop will assist the MGA in finetuning its final policy, and improving its quality and effectiveness. The Authority is currently consulting on the contents of the policy. The consultation period runs until 14 December 2022.

Last week, the Maltese watchdog welcomed a delegation from Ghana at its premises at SmartCity. The two entities discussed potential knowledge-sharing initiatives, and how the Ghana National Lottery Authority could benefit from Malta’s experience in implementing necessary changes in a sustainable manner, whilst striking a balance between regulatory objectives and the sector’s need.