Malta Gaming Authority, a gambling regulator, is planning to launch a sandbox test. A sandbox test is one that is conducted with software to check several things including security and to make sure the program is running correctly. The test will be run on cryptocurrency, such as Bitcoin. The idea is to test whether Malta will allow cryptocurrencies to be added as payment options.
Malta regulates many of the online casinos. Numerous casinos moved offshore for better taxes, but then they needed to have a regulator that could be trusted to keep the companies legitimate. The MGA formed to ensure any casino with the MGA logo would be recognized as properly licensed and regulated.
September 2017, Malta Gaming Authority announced that it would audit Prince Water House Coopers or PWC as a way to create a sandbox test environment that would assess risks and benefits of cryptocurrency.
Cryptocurrencies could improve Malta’s GDP by 12% if it is named trustworthy. Nothing else was said at the time when the test would happen. However, in a new press release, the Malta Gaming Authority announced they would start the trial in quarter two of 2018. The test will go on for six months. The regulatory body did say the length of the test could be changed, shortened or lengthened until they are satisfied with the results.
Before the test could happen, Malta Gaming Authority wanted shareholders to weigh in, and discuss parameters for the analysis. Parties will need to submit their contribution by April 30, 2018.
What the Test Will Focus On
The test is going to examine cryptocurrencies to see if it is a viable payment option. They will also look at “token” operators on a specific case by case situation. Operators will need to be able to verify a gamblers wallet address to accept cryptocurrency in their casinos. They want the wallets to be tied to a registered account and withdrawals to non-registered wallets will be forbidden. Although, the MGA did say there are some rare exceptions to the rule. The idea is to have one cryptocurrency account registered with one wallet address to ensure everything is legitimate.
There are still people who believe that cryptocurrency is a way to conduct illegal acts, and yes the situation has lent itself to that in the past, but more transparency is coming. With blockchain, it is easier to see where money is coming and going, but still, the MGA needs a test of the overall system.