The Malta Gaming Authority reiterated its commitment to embrace new technologies such as blockchain in order to further establish Malta as a preferred destination for international gambling and fintech businesses.
The MGA’s Executive Chairman Joseph Cuschieri was among the speakers at the International Association of Gaming Regulators (IAGR) conference, which is currently taking place in Johannesburg, South Africa. He participated in a panel dedicated to the deployment of new technologies by international gambling regulators and the challenges these might pose over the course of their implementation.
Mr. Cuschieri said he believes regulatory bodies should not be steering away from technology innovations but to rather embrace them. According to the MGA executive, it is also regulators’ responsibility to create the right environment for the application of such innovations.
Malta is currently crafting a new system of rules under which its rapidly growing gambling industry will be regulated. The draft legislation is expected to be introduced by the end of the year and, among other things, will present changes in the way gambling businesses are licensed by the MGA.
At present, the regulator grants different types of licenses depending on the type of services provided. Once the new law is enforced, the regulatory body will only grant two types of licenses – a business-to-business one and a business-to-consumer one.
Mr. Cuschieri also revealed during his participation in the IAGR conference that the new draft legislation will aim at recognizing the importance of technologies for the improvement of user experience and of the overall online gambling industry.
Virtual Currency, Blockchain, and Malta’s Gambling Industry
Earlier this year, the MGA together with auditing firm PwC compiled a report on the effects of the potential introduction of a virtual currency would have on Malta’s economy. The study is now reviewed by a specially assembled task force and its assessments and recommendations will be instrumental to the implementation of Malta’s National Blockchain Strategy.
The Maltese government recently approved a sandbox launch of a mock virtual currency, which is aimed to test whether a move of this kind would impact the nation’s economy in a negative manner. The MGA is participating actively in the afore-mentioned test as well as in Malta’s overall efforts to embrace blockchain and cryptocurrencies.
Mr. Cuschieri said during the regulators’ conference that the MGA will publish two separate papers in the first quarter of 2018 – one dwelling on the virtual currency sandbox launch and the other on the application of blockchain technology within the gambling industry. The gambling official said that according to him the technology has great potential in achieving efficacy in the gambling regulatory system and that it should not be seen as a threat by fellow regulators but as an opportunity for further innovation and growth of the whole industry.
