The Malta Gaming Authority is spearheading a revolution in the industry as it greenlighted the first phase of its Crypto Sandbox Framework. The first phase started on January 1 and is expected to last for another ten months.
In a press release stating the announcement, the MGA noted that it would be accepting applications from entities interested in using digital assets based on distributed ledger technology. These applications could be for entities willing to use digital assets directly or through third party service providers.
In October last month, the MGA revealed that it would be introducing a Sandbox Framework to explore the use of cryptocurrencies in gaming and create guidelines for the same. Malta has previously expressed its desire to become ‘The Blockchain Island’ and introducing cryptos to its booming gaming space could be the beginning of a new chapter in the industry.
Note that digital currencies or are coins or tokens that are issued on the blockchain. All transactions in cryptocurrencies become a part of an immutable distributed ledger, improving transparency and helping bring lower fees to the entire network. The most popular example of cryptocurrencies is Bitcoin.
The framework is planned to work only till October, but the MGA may decide to extend the period if they find it necessary. Once completed, it would make way for the second and final phase of the sandbox where licensees will have to apply to use Innovative Technology Agreements. The authority’s move to more innovative technologies is a sign that they want to revolutionize the industry. The licensees and authorities can now work together to unveil the new age of cryptocurrency-linked gaming in an open and transparent regulatory framework.
Several high thoughtput cryptocurrencies could be used for handling the needs of the gaming industry. Ethereum and Tron blockchains already have several decentralized applications dedicated to gaming that are becoming very popular and have high daily volumes too. Blockchains and crypto currencies will be able to provide faster and incredibly cheap payment processing capabilities to the users. It could also help in connecting users to multiple gaming universes.